Bombay Burmah Trading shares zoom 20% today to hit one-year high; here's what tech charts indicate

Shares of Bombay Burmah Trading Corp Ltd rose sharply in Friday's trade. The stock soared 20 per cent to scale its 52-week high of Rs 1,420.50. On BSE, around 1.98 lakh shares were last seen changing hands today. The figure was way more than the two-week average volume of 3,959 shares. Turnover on the counter stood at Rs 27.51 crore, commanding a market capitalisation (m-cap) of Rs 9,911.10 crore.

On technical setup, support on the counter could be seen around Rs 1,300 level. Although, a few analysts gave mixed views on the stock. One suggested booking profits at current levels and the other analysts said it may see higher levels in the near term.

DRS Finvest founder Ravi Singh said, "Bombay Burmah stock has given technical breakout with robust trading volumes. The increase in OI (Open Interest) data is showing a strong uptrend inherent in the counter. RSI (Relative Strength Index) and MAs (Moving Averages) are in the 'Buy' zone and the daily support lies around Rs 1,300 level. The stock price may touch the levels of Rs 1,500 in coming trading sessions."

AR Ramachandran from Tips2trades said, "The stock looks bullish but also overbought on daily charts with next resistance at Rs 1,527. Investors should be booking profits at current levels as a daily close below support of Rs 1,315 could lead to target of Rs 1,053 in the near term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 75.27. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 1320.21 against a price-to-book (P/B) value of 50.24.

The stock has a one-year beta of 0.92, indicating low volatility.

The company is a part of the Wadia Group and it is engaged in plantations, foods, textiles, chemicals, electronics and light engineering, health care and real estate sectors.

(Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)

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