Inox Wind shares hit record high for 5th session, overbought on charts; time to book profit?

Shares of Inox Wind Ltd hit a record high for the fifth straight session today. The multibagger stock rose to a high of Rs 254.20 on Monday against the previous close of Rs 251.80 on BSE. With the ongoing rally, the stock has gained 108% in six months and risen 67% in three months. The multibagger stock has climbed 391% in a year and gained 571% in two years. 

The stellar rally in the wind energy stock has prompted investors to think is there more steam left in the stock or is it time to book profit?

Om Mehra, Technical Analyst, SAMCO Securities said, "Inox Wind has broken out of a trendline connected to higher tops, signaling a potential shift in momentum. After extended consolidation, the stock has regained traction over the past few days, with volume surging sharply. The stock has immediate support at the 20 DMA, while the daily RSI is sustaining above the 75 level, reflecting strong bullish momentum. Additionally, the increase in delivery percentage to traded quantity this week highlights rising conviction among investors. The base is placed around the Rs 235-240 zone, and the overall setup looks strong. The stock is well-positioned to move toward the Rs 285-290 range. Furthermore, Inox Wind is now sustaining above the rectangular consolidation and comfortably holding above the Rs 250 level, while remaining near its 52-Week high, further affirming its bullish stance."

AR Ramachandran, a SEBI registered independent analyst said, "Inox Wind stock price is bullish but also overbought on the daily charts with next resistance at Rs 257. Investors should keep booking profits as daily close below the support of Rs 236 could lead to a fall till Rs 204 in the near term."

With a series of record highs in five sessions, Inox Wind stock is overbought on charts at a relative strength index (RSI) of 76.5. 

However, the stock fell over 3% to Rs 241.85 in the afternoon session today. Market cap of Inox Wind slipped to Rs 31,721 crore on BSE. 

Total 9.28 lakh shares of the firm changed hands amounting to a turnover of Rs 22.92 crore on BSE.

Inox Wind shares have a beta of 1.4, indicating high volatility in a year. The multibagger green energy stock is trading higher than the 5 day, 10 day, 20 day, 30 day , 50 day, 100 day, 150 day and 200 day moving averages.

Inox Wind is an India-based integrated wind energy solutions provider. The company is engaged in the business of manufacture and sale of wind turbine generators (WTGs). It also provides erection, procurement and commissioning (EPC), operations and maintenance (O&M) and common infrastructure facilities services for WTGs and wind farm development services.