A Renewable Energy Stock to Boost Your Trading Prospects

  • by THO
  • 7 days ago
  • news
  • 1


About the company:

Sterling and Wilson Solar Ltd (NS:) is an end-to-end solar engineering, procurement and construction (or EPC) solutions provider globally. The company is engaged in the operation and maintenance of solar power projects. SWSL is backed by the strong parentage of the Shapoorji Pallonji Group. The stock is trading at a 19.05% discount from a 52-week high level. The 52-week high and low range is Rs 509 – Rs 184.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, from the below chart, we can see that Sterling stock broke out of an Ascending Channel in the week of September 27, 2021. Since then, the scrip made a high of Rs 509 and has subsequently pulled back to the Upper Wall of the Channel. In the current week, the share seems to have reversed and we expect it to move higher. We anticipate the upward move aided by an increase in volumes. The relative Strength Index (or RSI) line took support at a level of 60 and has reversed. It indicates the resumption of positive momentum on the scrip. Long term investors can enter at the current level by maintaining stop loss at Rs 330 on a weekly closing basis. 


One day time frame: (Chart 2)

On a daily time frame, you should note that Sterling share is in process of making a Double Bottom pattern. We can also see that the scrip has taken support on the 50-day EMA line and has bounced back. We hope to witness an upward move from current levels supported by higher volumes. RSI line has bounced back from a level of 40 and is now tending towards 50. Positional traders should enter only when the share crosses Rs 424 and stays above it and the RSI line should be above 50. They should maintain the stop loss at Rs 392 on a daily closing basis.

SWS2

Conclusion:

We believe the Sterling stock to maintain positive bias and move higher in the subsequent sessions. Short term traders should enter only when the stock crosses Rs 416 and stays above it. They should keep a strict stop loss at Rs 398 on a daily closing basis.



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