Sula Vineyards shares zoom 20% to hit one-year high; can this strong up move continue?

Shares of Sula Vineyards Ltd on Monday extended their sharp gains for the second consecutive session. The stock soared 20 per cent to hit a one-year high of Rs 665.50. At this price, the multibagger scrip has gained 110.90 per cent from its 52-week low of Rs 315.55, a level seen on January 6 last year. Brokerage CLSA, in its latest note, has upgraded the rating on the stock to 'Buy' from an earlier rating of 'Neutral'.

Technical analysts largely remained positive on the counter while mentioning that it may see some cool-off after the recent spike. Support on the counter could be seen at the Rs 600 zone. On the higher side, a decisive breach above the Rs 650 level is required for a further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Sula Vineyards have soared almost 30 per cent in the last two trading sessions on the back of robust volumes over the rating upgrade. The undertone remains buoyant and Sula's stock is poised to trade into uncharted territory in the near period. That said, any cool-off towards the Rs 600-580-odd zone is to be considered healthy and is expected to attract buyers at lower levels."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has witnessed a strong spurt in the last two sessions. Some cooling off cannot be ruled out after the mentioned rise. The near-term support is at around Rs 610 level. And, if a short correction is witnessed, then the Rs 600-610 zone would be the appropriate levels from where we can antipcate for second round of momentum. Only a decisive breach below Rs 565 zone shall weaken the bias overall and then can expect for a further slide. As of now, with bias maintained strong, one can anticipate for further targets of Rs 720 and Rs 755 levels once a decisive breach above Rs 650-655 levels is confirmed."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 600 and resistance at Rs 650. A decisive close above Rs 650 level may trigger a further upside till Rs 675. Expected trading range will be between Rs 555 and Rs 700 for a month."

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AR Ramachandran from Tips2trades said, "Sula Vineyards is bullish but also very overbought on daily charts with next resistance at Rs 666. Investors should book profits at current levels as a daily close below support of Rs 583 could lead to Rs 450 in the near term."

DRS Finvest founder Ravi Singh said, "The stock may hit Rs 670 in the near term. Keep stop loss placed at Rs 630."

As of September 2023, promoters held 26.27 per cent stake in the winery.

(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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