Shilpa Medicare shares jump 14% today amid heavy volumes; here's what tech charts hint

Shares of Shilpa Medicare Ltd extended their gains for the third consecutive session in Tuesday's trade amid heavy volumes. The stock today jumped 13.56 per cent to hit a day high of Rs 272.95 over its previous close of Rs 240.35. Around 5.17 lakh shares changed hands today, which was more than eight times compared to the two-week average volume of 63,000 shares. Turnover on the counter stood at Rs 13.48 crore, commanding a market capitalisation (m-cap) of Rs 2,299.38 crore.

At today's high price of Rs 272.95, the stock traded 22.73 per cent higher from its 52-week low of Rs 222.40, hit on March 28 this year. That said, the counter has plunged 37.68 per cent from its one-year high of Rs 438, a level seen on July 20, 2022.

On a year-to-date (YTD) basis, the counter has slipped 4.78 per cent.

On the earnings front, the company reported a net loss of Rs 8 crore in March 2023 quarter (Q4 FY23), compared to a net profit of Rs 29.50 crore during the same period a year ago, due to a tax outflow. Shilpa Medicare had reported a net loss of Rs 6.62 crore during the December 2022 quarter (Q3 FY23).

The stock was last seen higher than the 5-day, 20-, 50- and 100-day moving averages but lower than the 200-day moving averages. The counter's 14-day relative strength index (RSI) came at 69.96. 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 36.48. It has a price-to-book (P/B) value of 0.97.

Shilpa Medicare has an average target price of Rs 292, Trendlyne data showed, suggesting a potential upside of 9.67 per cent. The scrip has a one-year beta of 0.47, indicating low volatility.

Support on the counter could be seen at Rs 255.

AR Ramachandran from Tips2trades said, "Shilpa Medicare is very bullish on the daily charts with next resistance at Rs 270. A daily close above this resistance could lead to target of Rs 286 in the near term. Support will be at Rs 255."

Meanwhile, Indian equity benchmarks recovered from initial losses and traded higher today in a volatile session. The domestic indices turned positive, led by gains in financials, banks, technology, metals and automobile stocks.

Also read: Zee Entertainment shares plunge 7% to new 52-week low amid high volume. Here's why