AIA Engineering hits a lifetime high on August 10; what should investors do with this stock?

AIAENG has soared over 8% during early Wednesday hours. 

The stock of AIA Engineering is among the top trending stocks on Wednesday, having soared over 8% as investors cheered after its strong quarterly results. The company declared its earnings on Tuesday, and the net profit jumped over 27% to Rs 190 crore YoY. Sales grew at the rate of nearly 46% YoY, while its EPS soared over 25% to Rs 20.19. Better than expected result has boosted investors’ confidence over this stock as strong buying interest has been seen today. The shares of AIA Engineering has given over 34% returns over the last 6 months and 27% in one year so far.

The stock is in a strong uptrend and has formed higher highs and higher lows on the daily chart. After today’s strong rally, it has hit a lifetime high of Rs 2650 level. Interestingly, the stock is strongly bought on dips as it has bounced from its 20-DMA multiple times. The volumes have been huge lately and are greater than the 10-day and 30-day average volume.

Meanwhile, the 14-period weekly RSI (74.50) is in a super bullish zone and above its prior swing high. The ADX (36.24) is in a strong uptrend and shows good trend strength. On the daily timeframe, the MACD has indicated a bullish crossover. The OBV has jumped sharply on account of strong volume. The Elder Impulse has shown fresh entry while KST and TSI indicators are already displaying bullishness. Overall, the stock is set to trade higher in times to come.

With sound fundamentals and good technical strength, the stock can test the level of Rs 2800, followed by Rs 3000 in the medium term. Investors can choose to buy this stock on dips. Meanwhile, one can maintain a stoploss at a 50-DMA level of Rs 2275 on weekly closing basis. Include it in your watchlist to track its further performance.

AIA Engineering is a certified ISO 9001 company that specialises in the design, development, manufacture, installation and servicing of high chromium wear, corrosion and abrasion resistant castings used across cement, mining, and thermal power generation industries.