Olectra Greentech shares zoom 11% to hit one-year high; what's next on technical charts?

Olectra Greentech Ltd shares rose sharply in Friday's trade to scale their one-year high level. The stock surged 10.70 per cent to hit a 52-week high of Rs 1,493.50. At this price, the multibagger scrip has rallied 298.96 per cent from its one-year low of Rs 374.35, a level seen on February 23 last year. The sharp up move came on the back of bagging meaningful orders to deliver electric-buses and its partnership with Reliance Industries Ltd (RIL) for hydrogen buses.

Recently, the company has informed BSE about a media interaction with its Chairman and Managing Director (CMD) KV Pradeep. "Olectra currently has more than 9,000 bus orders and has successfully delivered 232 buses in the first half of the fiscal year 2023-24 (FY24). The e-bus maker is poised to double the delivery number during the second half (FY24). By FY25, we are planning to deliver 2,500 business," the Olectra CMD stated in the mentioned interview.

On technical setup, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 73.51. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 137.61 against a price-to-book (P/B) value of 12.51.

Support on the counter could be seen at Rs 1,400, followed by Rs 1,350 and Rs 1,323 levels. The stock has immediate resistance at Rs 1,500 and a decisive breach above the said zone can trigger a fresh upside move.

"The stock may see a further rise for next targets of Rs 1,570-1,690 levels in the coming days. The near-term support would be maintained near Rs 1,350 level and with the outlook getting stronger, one can stay invested in this stock," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"Support will be at Rs 1,400 and resistance at Rs 1,500. A decisive close above Rs 1,500 level may trigger a further upside till Rs 1,550. Expected trading range will be between Rs 1,350 and Rs 1,600 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Olectra Greentech is bullish but also overbought on daily charts with next resistance at Rs 1,548. Investors should book profits at current levels as a daily close below support of Rs 1,323 could lead to Rs 1,185 in the near term," said AR Ramachandran from Tips2trades.

As of September 2023, promoters held 50.02 per cent stake in the company. It is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and manufactures electric buses in India. Olectra is also India's largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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