This major tractor manufacturer has hit an all-time high; do you own it?

This midcap stock jumped over 9% during the initial hour of Monday’s trading session. 

The traders cheered on Monday as Indian indices see a good short covering rally after the Friday havoc. Meanwhile, the stock-specific action continued on D-street and strong buying is seen across midcap and smallcap stocks.

Meanwhile, the stock of Escorts Kubota has soared over 9% amid strong buying interest from the market participants. With this, it has hit a fresh all-time high of Rs 2114.35 level. The volumes rose for the third consecutive day and are above their 10-day and 30-day average volume. Interestingly, the stock bounced off from its 20-DMA on Monday. In the past 3 months, the stock has jumped over 40% and is strongly bullish over the medium term. The stock has been a proven multibagger, having soared over 300% in less than 3 years!

From the technical perspective, the stock indicates extreme bullishness. The RSI is in the bullish zone across all the bigger timeframes. The MACD is about to give a bullish crossover on the daily timeframe. The OBV is rising showing buying interest in the stock. The +DMI is well above -DMI, while its ADX (31.15) shows good trend strength. All of its moving averages are in pointing upwards and indicate bullishness. The Elder Impulse system has indicated a fresh buy and TSI is also bullish. In a nutshell, the stock is likely to trend upwards in the medium term.

Considering its positive price pattern, and bullish technical parameters backed by rising volume, we can expect the stock to test higher levels. Momentum traders have a good stock to keep a watch on!

Escorts Ltd is a leading material handling and construction equipment manufacturer. The company manufactures and markets a diverse range of equipment like tractors, cranes and other equipment. With a market capitalization of about Rs 27500 crore, it is one of the strong growing companies of its sector.