After a multi-year breakout, this small-cap stock is on the cusp of a new bull run!
Bannari Amman Sugars is one of the overlooked stocks from the small-cap index, which have helped investors to create amazing wealth in the year 2021. The stock is up by a staggering 94 per cent on a YTD basis. And, recently, the stock witnessed a breakout of two interesting patterns. One is the multi-year breakout while the other is a double bottom pattern.
The stock had made a high of Rs 2,649 in the year 2017; thereafter, it tumbled nearly 75 per cent from the highs of 2017 in the next 28 months to touch a low of Rs 638.60. The stock bottomed out in the month of March 2020 and thereafter, started its Herculean move and made a sequence of higher highs. On Monday, the stock recorded double-digit gains along with a rise in volume. Volume for the day has so far crossed its previous day volume and it is greater than its 10-day as well as 30-day average volume, which indicates larger participation in the direction of the trend.
The daily 14-period RSI is in super bullish territory and also, in the rising trajectory, which supports a positive bias. The daily MACD is pointing northward while sustaining above its nine-period average, which adds a chorus of bullish bias.
Let’s have a quick glance at the group! Bannari Amman Group is one of the largest industrial conglomerates in South India with a wide spectrum of manufacturing, trading, and service activities. Manufacturing and trading include sugar, alcohol, liquor, granite, etc. The service sector has wind power energy, education, and so on.