Can AB Capital reclaim its 52-week high level?

Aditya Birla Financial Services Group (ABFSG) is an umbrella brand for all the financial service businesses of the Aditya Birla Group.

ABFSG has a significant presence across all major financial services like life insurance, asset management, NBFC, online money management, and general insurance advisory services. It is a midcap company with a market cap of Rs 30,540 crore. The maximum stake is with the promotors, which is approximately 70.70%. The FIIs and the DIIs hold about 6% each, while the retail portion holds 15% of the stake of the company.

The company has delivered strong business performance over the last few years which led to an increase in revenue and net profits. Also, the company has captured the market share from 6.34% to 19.52% over five years. Such strong business fundamentals have attracted investors which is evident from its stock price.

The YTD performance of the stock is excellent at about 47.82% while performance for three months stands at 10.02%. This shows that the stock has delivered a good performance in the medium and short term as well.

Today, the stock has rallied over 5% and currently trades at 126. The stock has witnessed a breakout from a 39-week long downward sloping trendline supported with a huge spike in the volume. On the daily timeframe, the stock is in a strong uptrend despite the weak market sentiment. The RSI, which is at 74, has entered the super bullish zone. The trend indicator ADX is at 22 and is rising at a fast pace. Along with this, the stock trades above all the key moving averages. It is in a strong uptrend and rising volumes indicate interests from the institutional level. The 52-week at of the stock stands at 140 and with the kind of momentum the stock is showing, it is expected to reclaim this level.

Considering the performance AB Capital has shown in the last few days, we can expect the stock to continue its momentum on the higher side. Traders can look forward to some good returns in the short to medium term as the technical analysis validate our point.