As the market continues to remain firm throughout the session, long positions are doing well than short ones. The small and mid-cap spaces are buzzing since the opening tick with the and index gaining 1% and 0.82%, respectively, as of 2:18 PM IST.
One counter from the small-cap space that’s turning heads on the street is Rainbow Children’s Medicare Ltd (NS:) which runs multi-specialty pediatric, obstetrics and gynecology hospitals, and has a market capitalization of INR 11,178 crore.
Image Description: Daily chart of Rainbow Children’s Medicare with volume bars at the bottom
Image Source: Investing.com
The stock is in a very strong bull run and has proved to be a goldmine for investors since its IPO in May 2022. From the opening price of INR 510, the stock is now trading at INR 1,169, delivering a gigantic return of 129% in a little over a year.
Today, this counter delivered a fresh breakout on the daily chart, rising above the resistance of INR 1,125 as it gained over 6% on high investors’ demand. The total volume for the day so far has been recorded at over 483.4K shares, which is 77% higher than the 10-day average of 273.1K shares.
Although this is not a very high volume jump, and I prefer a minimum of 300% rise, as it is trading at an all-time high level, the underlying bullish tone is quite strong. The stock is also trading above its 200-day simple moving average (SMA) which is a robust indicator of a bull run and is often used to add stocks to the portfolio for the long term.
A retest to the breakout level of INR 1,125 might give a better long opportunity to investors from the risk-to-reward perspective. On the upside, traders can eye for a level of INR 1,235 which can be seen on the screen quite shortly.
Read More: Stock Reversing From All-Time Lows, Gains 7% in 2 Days!
