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The markets have been rallying for the last few sessions and started this week on the same note, with the benchmark surging 0.6% to 19,939, by 12:16 PM IST and the index rallying to a new all-time high.
In the midst of such a bullish environment, the share price of Computer Age Management Services (CAMS) is on a roll. The company is in the business of providing services to asset management companies and has a market capitalization of INR 12,079 crore.
The company is also witnessing healthy growth in profit and has been increasing its net income at a yearly rate of 14.3%, over the past 5 years. FIIs are continuously increasing their stake in the company, from 29.28% to 35.78% in one year ended 30 June 2023.
Image Description: Daily chart of CAMS with volume bars at the bottom
Image Source: Investing.com
On the technical front, the stock jumped over 6% to INR 2,608 and surged past its horizontal resistance of INR 2,545 on the daily time frame. This is around the same level from where the stock witnessed some profit booking after a rally in the previous month. The break of this hurdle is clearly indicating investors’ inclination towards the company’s shares which is a good sign for the ongoing rally.
The volume for the day so far has been recorded at over 456K shares, which is the highest one-day figure in over 2 months, and we are still some 3 hours away from the session’s close.
With today’s resistance break the stock has continued its uptrend and is now heading toward the next resistance of INR 2,680, giving traders a good swing opportunity. A stop loss can be maintained below INR 2,431 to curb the downside. The risk-to-reward ratio can further be improved if the stock retests its breakout level.
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