Olectra Greentech shares surge 11% today; key technical levels to watch

Shares of Olectra Greentech Ltd jumped 10.66 per cent to hit an intraday high of Rs 1,378.55 in Friday's trade. The stock was last seen trading 7.77 per cent higher at Rs 1,342.50. At this price, the multibagger scrip has rallied over 159 per cent in 2023. The sharp up move witnessed this year came on the back of bagging meaningful orders and its partnership with Reliance Industries (RIL) for hydrogen bus.

Technical analysts largely suggested that the stock looked bullish but also overbought. On the higher side, resistance may be found around the Rs 1,450 zone. Support could be seen at Rs 1,278, followed by Rs 1,225 level. An analyst said traders should book profits at current levels.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has indicated a big bullish candle on daily charts. We expect that a target of Rs 1,435 could be achievable in the coming days. The near-term support would be at Rs 1,225."

AR Ramachandran from Tips2trades said, "Olectra Greentech is bullish but also overbought on daily charts with next resistance at Rs 1,465. Investors should book profits at current levels as a daily close below support of Rs 1,278 could lead to Rs 1,156 in the near term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.86. 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 127.07 against a price-to-book (P/B) value of 11.55.

As of September 2023, promoters held 50.02 per cent stake in the company. It is a subsidiary of Megha Engineering and Infrastructures Ltd (MEIL) and manufactures electric buses in India. Olectra is also India's largest silicone rubber/composite insulators manufacturer for power transmission and distribution networks.

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

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