Gladiator Stocks – Sanghvi Movers – ICICI Direct

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Technical View

– The capital goods sector has been resilient during the recent market correction and is seen outperforming the broader market. Within small cap capital good stocks, Sanghvi Movers is our preferred pick. It recently witnessed strong buying demand from the 52 week’s EMA (at Rs. 191) and during the current week logged a resolute breakout from last four month’s range (Rs. 219-169) signalling resumption of up move and offering an entry opportunity.

– Key point to highlight is that the stock has entirely retraced past two week’s decline (Rs. 219-194) in just a single week, highlighting robust price structure that augurs well for acceleration of upward momentum.

– The weekly MACD is seen moving into positive territory and recently generated a buy signal moving above its nine period’s average, thus validating the positive bias.