Swan Energy shares snap 3-day fall, climb 4% today; will this upmove sustain?

Shares of Swan Energy Ltd moved 4.27 per cent higher on Thursday to settle at Rs 592.05, pausing their three-day fall. The stock saw high trading volume on BSE as around 4.07 lakh shares changed hands today. The figure was higher than the two-week average volume of 40,000 shares. Turnover on the counter came at Rs 24.66 crore, commanding a market capitalisation (m-cap) of Rs 18,558.21 crore.

The company held its 116th annual general meeting (AGM) today. "In compliance with relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (“SEBI”), the Notice of AGM and the Annual Report for the Financial Year 2023-24, is being sent through electronic mode to all those members of the Company whose email addresses are registered with the Company and/or Depository Participant(s)," it stated.

Earlier in May this year, the company said it completed an exercise of issuing one (1) equity share for every 275 equity shares held by the existing shareholders of Reliance Naval and Engineering Ltd (RNEL).

"RNEL is in the process of obtaining the relisting approval from the stock exchanges and has made the required payments as demanded by the exchanges. The final listing approval is under consideration of the exchanges," it then stated.

Swan Energy had acquired Reliance Naval, which was once controlled by Anil Ambani, through the National Company Law Tribunal's resolution plan. Reliance Naval shares were suspended from trading effective July 14, 2023, due to procedural reasons.

Technical analysts largely remained positive on the counter. With that being said, support could be seen in the Rs 588-568 zone.

"The stock has potential to hit an upside target of Rs 628. Keep stop loss placed at Rs 588 for this trade," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.

"Support will be Rs 585 and resistance Rs 625. A decisive close above Rs 625 level may trigger a further upside towards Rs 650. The expected trading range will be between Rs 585 and Rs 650 for the short term," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi.

"Swan Energy's stock price is bullish on daily charts with strong support at Rs 568. A daily close above resistance of Rs 622 could lead to an upside target of Rs 666 in the near term," said Sebi-registered research analyst AR Ramachandran.

As of June 2024, promoters held a 53.96 per cent stake in the company.