You should always feel bullish about a company that is doing all the right things and usually, such stocks just take off vertically when the time comes. NESCO, 4700 crores market cap company, is at that stage; after making +50% move in CY2019.
As you can see in the chart below, NESCO stock made slow and steady progress with the base at 100 day moving average. It did this even when the broader market was not supportive
Source: Chartalert.com
The only problem in the entire upmove – Lack of Volumes, but over the last few months – the trading interest (volume) has also picked up. Just see below – how the stock made a large candle move and then saw a strong follow-through move from 560 to 700
Source: Chartalert.com
Here’s the best part: the stock has broken out to new high with a breakout above 600 [well defined resistance] on above average volumes
Source: Chartalert.com
Why NESCO stock looks good?
The stock has done a text book move in entire CY2019 even when the broader market was not supportive. Informed buying?
Institutional Interest picking up now – indicative by volumes
The stock has broken out and as long as the stock trades above 590 one can be hopeful for great 2020
NESCO operates in two divisions: Bombay exhibition center/realty division and engineering division, where it supplies tools/equipments to Railways and Ordinance factories.
WHAT IF I AM WRONG PLAN?
If the stock slips below 590, then one would be better off liquidating the position.
Please do your own due diligence before taking any position.
Thanks so much Sir for Nesco. I hold it as Techno Funda stock. If this breakout sustains with 590 as sl does it have potential to surprise on upside with upside can be nearly double(wishlist) as it has given breakout above 600 n 650 also. your views pls
I agree. The pattern looks extremely bullish and one should just hold and sit tight
Hi Deepak…what’s your view on Lalpath and metropolis our two healthcare stocks still doing ok. Metropolis ralied again on Tuesday. Thanks