Orissa Minerals Development Stocks Rallied 20% Today!

In the midweek trading session, Nifty opened on a positive note but lost strength in its initial hours. That’s when the bulls came into action and covered all losses. Currently, it is trading around the day’s high. Interestingly, stocks from the minerals and mining industry witnessed strong buying interest. One stock from the same industry, nearing its technical breakout of more than the 100-week consolidation range, grabbed investors’ attention by rallying 20% today.

The stock is Orissa Minerals Development Company Ltd, engaged in the exploration of mineral properties. The firm operates iron ore and manganese ore mining leases at Barbil, located in Odisha. The company was founded on August 16, 1918, and is headquartered in Bhubaneswar, India.

Technically, if we draw the trendline from the highs of the midweek of June 2021 (Rs 3802) and the last week of April 2022 (Rs 3674.80), we’ll get the breakout trendline of a continuation pattern named bullish up flag pattern. Interestingly, this consolidation is supported by the 200-week moving average (200WMA), which makes this consolidation healthy. 

In the current week, the stock witnessed strong buying interest, resulting in a rally of more than 14% till the midweek session with massive volumes, surpassing the last 50 week’s average volume. Currently, the stock is trading at Rs 3290, and closing above the breakout trendline level (Rs 3490) will register the breakout of this long-term technical price pattern. The minimum possible target of this pattern will be around Rs 4800, which is nearly 35% higher than the breakout level.

Recently, the stock also registered a bullish crossover of the 5-13-26-day moving averages (DMA), and the 14-day relative strength index (RSI) is also placed in the super bullish zone (76 RSI level), indicating strong momentum. Thus, momentum traders and long-term investors can keep this stock on their radar for the upcoming sessions.