This Jhunjhunwala stock hit 52-week high for two straight sessions; here's why

Shares of infra major NCC hit their 52 week high for the second straight session today as India Ratings and Research (Ind-Ra) has revised the civil construction firm's outlook to positive from stable while affirming the long-term issuer rating at 'IND A plus'. In the current session, NCC stock hit a 52 week high of Rs 219.70 on BSE. Market cap of the firm stood at Rs 13,363 crore. Total 1.51 lakh shares of the firm changed hands amounting to turnover of Rs 3.26 crore on BSE.

In the December 2023 quarter, Rekha Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala held 1.85% stake or 1.16 crore shares in the company.  

NCC stock is trading higher than the 5 day, 10 day, 20-day, 50-day, 100-day and 200-day moving averages. NCC share has gained 147.57% in one year and risen 28.39% since the beginning of this year.

NCC stock ended 8.99% higher at Rs 212.15 on Monday. NCC stock hit a 52-week high of Rs 213.60 in the same session.

In terms of technicals, the relative strength index (RSI) of NCC stands at 70, signaling neither the stock is overbought or oversold. The stock has a one-year beta of 0.5, indicating average volatility during the period.  The PE ratio of NCC stands at 22.22. The PE of infra and construction industry stands at 49.82.  

HDFC Securities has assigned a target in the range of Rs 229- Rs 260. One can fix a stop loss of Rs 182. The stock can be bought in a range of Rs 203-Rs 206. The time period for the recommendation is three months.

The brokerage in a note said, "On Jan 10, 2024, the stock broke out from the upward sloping trend line on the daily chart. Price breakout was accompanied with jump in volumes. On January 18, 2023, the stock witnessed throwback fall and reversed north, resuming its primary uptrend. The stock price is placed above all important moving averages, indicating bullish trend on all time frames. Indicators and Oscillators like DMI and RSI have turned bullish on the daily charts."

Abhijeet from Tips2trade said, "NCC stock looks overbought on the Daily charts with strong resistance at Rs 220. Investors should book profits at current levels as a Daily close below support of Rs 194 could lead to a target of Rs 154 in the near term."

NCC Limited is engaged in construction/project activities in the infrastructure sector. The company is engaged in the infrastructure sector, primarily in the construction of industrial and commercial buildings, housing projects, roads, bridges and flyovers, water supply and environment projects, mining, power transmission lines, irrigation, and hydrothermal power projects, real estate development.

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