Technical Check: 160% in a year! This shipping company could rally another 30% after breakout on weekly charts

Shipping Corporation of India (SCI) rose nearly 70 per cent so far in the year 2021, and about 167 per cent in the last one year compared to 22 per cent and 31 per cent upside seen in the Nifty50 in the same period.

The shipping company with a market capitalization of nearly Rs 7,000 cr hit a fresh 52-week high of Rs 154.30 on 29 November and the technical pattern suggests that the rally or momentum is likely to continue.

The stock witnessed a trendline breakout on the weekly charts which suggests that the momentum is likely to continue.

Technical indicators such as Aroon Up/Down MACD and KST Indicators all suggest potential upside till Rs 190 that translates into an upside of 27 per cent from Rs 149.85 recorded on 29 November, suggest experts.

Aroon is a technical indicator that is used to identify changes in the trend. KST indicator or Know Sure Thing is a momentum oscillator that is used to interpret rate-of-change price data.

The Shipping Corporation of India is an Indian public sector undertaking that operates and manages vessels that service both national and international lines.

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The stock price of Shipping Corporation of India Ltd fell from 113.5 in November 2017 to 24.85 in August 2019. The stock traded below the averages and the super trend indicator was continuously in the negative mode.

Then, in November 2019, a corrective pull-back came in the form of value buying and the stock made a high of 69.80.

“Higher bottoms and higher tops formation helped the stock to gradually trade in an uptrend, to reach a high of 134.60 in March 2021. The rise was supported by volumes and the super trend indicator turned positive in July 2020,” Bharat Gala, President - Technical Research, Ventura Securities Ltd, said.

Recently the stock charted range breakouts above the trend line, joining November 2017 and November 2021 and touched a high of 151.55, accompanied by supportive volumes.

“The Aroon Up/Down MACD and KST Indicators suggest a possible up move. The possible targets are 190-230-270,” he said.

Gala further added that if the stock price corrects downwards the buy levels are (137-129)-122-(115-111), and a Stop Loss can be observed in the trade is 92.