Welspun Corp shares jump 6% today; check target price, resistance levels and support for the multibagger

Shares of Welspun Corp Ltd surged during the trading session on Friday amid the heavy volumes. The stock has delivered multibagger returns to the investor in the last few months and analysts, both technical and fundamental, see more steel left in the counter.

Shares of Welspun Corp, the flagship company of Welspun Group, rose over 6.10 per cent 541.70 on Friday, commanding a total market capitalization of more than 14,000 crore. The scrip had previously settled at Rs 510 on Thursday. The stock has gained more than 190 per cent from its 52-week lows at Rs 186.

More than 6.32 lakh shares of Welspun Corp, worth over Rs 33.88 crore exchanged hands on NSE as of 12.15 pm, while more than 0.69 lakh shares of the company amounting to Rs 3.68 crore were traded on BSE as of the same time.

Technical analysts are positive on the stock but see a few resistances for the stock, where it is seeing consistent selling pressure. However, it able to manage those levels, the stock may reclaim its previous high of Rs 625, it hit about a month ago. The stock is down over 13 per cent from its 52-week highs.

Welspun Corp is tussling to decisively close over the 50-simple moving average (SMA) placed at Rs 560 mark. To breakout on the upside, the price action must engulf all of the selling pressure emerging around this barrier, said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox

"When that happens, the breakout rally could fetch a new historic peak of Rs 650. On the downside, Rs 524 must be defended on the closing basis. The oscillator, Relative Strength Index (RSI) has turned sideways, implying muted strength," he said.

Welspun Corp reported a manifold fold jump in its consolidated net profit at Rs 293.70 crore in the quarter ended December 2023. The company had reported a net profit at Rs 23.22 crore in the year ago period. Its revenue from operations almost doubled to Rs 4,750 crore in the Q3FY24.

Welspun has seen a bullish reversal pattern at the price of Rs 510–520 on the daily chart, said Ganesh Dongre, Senior Manager - Technical Research, Anand Rathi Shares and Stock Brokers. "Technically, a short-term bullish engulfing pattern has been formed on the hourly charts, which is bullish in nature. Traders can buy it with a stop loss of Rs 510 for the target price of Rs 560-570."

The FY24 guidance remains intact and the order book for the line pipe segment in India, US and Saudi Arabia stands at about 2-3 quarters, valued at Rs 7,200 crore(ex Saudi Arabia), said JM Financial, which remains positive on the stock with a target price of Rs 660 apiece. "Sintex announced a foray into PVC pipes segment with potential market size of Rs 60,000 crore by FY25," it said.

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