Tejas Networks shares rally nearly 53% in 4 sessions; is more steam left?

Shares of Tejas Networks Ltd extended their upmove for the fourth consecutive session on Monday, surging 11.44 per cent to settle at Rs 485.45. With this, the stock has soared 52.90 per cent in just four trading days.

The recent surge came amid a combination of bulk transactions on the exchanges. Major participants in the bulk deals included Elixir Wealth Management, HRTI Pvt Ltd, IRAGE Broking Services, Jump Trading Financial India, Junomoneta Finsol, Microcurves Trading, NK Securities Research, QE Securities, QICAP Markets, CLT Research, Junomoneta Finsol and others.

Earlier, the company announced that it had signed an agreement with NEC Corporation to manufacture and supply 5G massive MIMO radios.

From a technical standpoint, a few analysts remain divided on the stock's near-term trajectory following the sharp run-up.

According to AR Ramachandran, part-time Sebi-registered research analyst at Tips2trades, "Tejas Networks' stock is bullish and also slightly overbought on daily charts with next resistance at Rs 547. Investors should be booking profits at current levels as a daily close below support of Rs 449 could trigger a fall towards Rs 370 in the near term."

Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, noted, "Support is seen at Rs 470, while resistance is placed at Rs 500. A decisive move above Rs 500 could push the stock towards Rs 535, with the expected short-term trading range pegged between Rs 470 and Rs 535."

Tejas Networks is a part of the Tata Group, with Panatone Finvest Ltd, a subsidiary of Tata Sons, being the majority shareholder.

Meanwhile, Indian equity benchmarks remained closed on Tuesday due to 'Holi'.