Nesco Stock Price Surges Over 9% in One Week; Breakout from Long-Term Pattern

After a recent period of profit booking and a downward movement in the markets, one standout stock from the service sector has been garnering attention. Nesco Ltd, a company engaged in engineering, realty, and other services, has experienced a remarkable rally of over 9% in the current week, accompanied by robust trading volumes. This surge has resulted in a breakout of a long-term continuation price pattern on the weekly chart.

Nesco Ltd operates through several segments, including Nesco IT Park, Bombay Exhibition Centre, Nesco Foods, and Indabrator. The Nesco IT Park segment offers office space on lease to companies in IT towers 03 and 04. The Bombay Exhibition Centre provides infrastructure for exhibitions and events to both Indian and foreign organizers. The Nesco Foods segment caters to banquets, exhibitions, F&Bs, and offices located within the Nesco premises. Meanwhile, the Indabrator segment is a manufacturer of surface preparation equipment with integrated manufacturing facilities for equipment, spares, and abrasives in Gujarat. The company was founded by Jethabhai Vaghjibhai Patel in April 1939 and is headquartered in Mumbai, India.

Previously, Nesco’s stock price had experienced a strong rally, reaching its peak at Rs 696.80 in the first week of July 2021. However, it subsequently underwent a retracement, finding support at a level that retraces over 61.8% from the impressive rally that began in the last week of May 2020, around the Rs 380 level.

Recent trading days have seen a surge in buying interest in the stock, leading to an upward movement after a bullish crossover of the 5-26 and 13-26 Daily Moving Average (DMA). 

Furthermore, a breakout trendline has emerged by connecting the highs of the first week of July 2021 (at the Rs 696.80 level) and the first week of September 2022 (at the Rs 686.45 level), indicating a prolonged continuation price pattern spanning over 100 weeks.

In the current week, the stock rallied more than 9% and closed above the breakout trendline, accompanied by substantial trading volumes of more than 1.21 million shares. This trading action confirmed the breakout, igniting optimism among investors. The stock now holds the potential to reach Rs 845, representing a gain of approximately 25% from the breakout level (Rs 677). 

Swing traders and short-term investors are closely monitoring Nesco Ltd’s performance as it presents an enticing opportunity for further upside potential.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.