Shares of Coal India on Wednesday climbed over 2.5 per cent in afternoon deals to trade near their 52-week high levels. The stock touched an intraday high of Rs 232.50 on NSE, rising 3.13 per cent from its previous close of Rs 225.45.
Considering yesterday’s closing of Rs 225.45, Coal India zoomed more than 62 per cent from their 52-week low of Rs 139.15, hit on December 20, 2021. In 2022, the coal production major’s stock surged more than 45 per cent.
The stock traded a little over 6 per cent lower from its 52-week high — hit on September 8, 2022 — of Rs 240.50.
Market watchers believe that there’s more upside in the stock and it may start “the next leg of a rally” in the near term.
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Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, “Coal India stock is in bullish momentum, and witnessed a breakout of Cup & handle formation on the daily chart. It has retested its previous breakout level at Rs 207, after hitting a fresh 52-week high at Rs 240.50. Now it is starting the next leg of a rally where Rs 250 is an immediate resistance level; above this, we can expect a run-up towards Rs 280 levels in the near term.”
On the downside, he said, Rs 215 will act as strong support. MACD (Moving average convergence divergence) is supporting the current strength whereas the momentum indicator RSI (relative strength index) is also positively poised, Gour added.
AK Prabhakar, Head of Capital, IDBI Capital, said, “Coal India’s delivery schedules are very good and the stock may climb further till the European gas crisis is resolved. Coal prices are at elevated levels and Coal India has improved its execution and delivery of coal in the last 18 months after India’s power crisis. This has helped in better realization and profitability of the company.”
Another expert echoed similar views and stated that the stock “can still witness upside momentum.”
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Kush Ghodasara, an independent market expert, said, “Coal India has been in upside momentum since the anti-China strategy accepted by many countries. Technically, the stock has been trading above the 200-day average with consistent volumes for the last three weeks. We can still witness upside momentum in the stock till Rs 265 in the short-term with a stop loss at Rs 220.”