Shares of Voltas Ltd closed in green continuing its rally for a second straight day on Wednesday. The stock closed at Rs 836.95 per share, up 1.75% on BSE before hitting a high of 840.90 apiece.
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Voltas, which saw a decline in the share prices on Friday, witnessed a hike of 1.85 per cent in price on Tuesday, with average daily volatility of 3.161 units. The stock closed higher on August 22 even as equity benchmark indices Sensex and Nifty ended almost flat as investors booked profits amid concern over potential rate hikes in the US and persistent foreign funds outflows.
The domestic brokerage firm IDBI Capital has projected a 30% profit booking for investors. In the last 20 years the Tata Group stock has seen a massive surge from Rs 8 per share to Rs 840 at the current level.
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On July 25, 2003, the shares were available for just Rs 7.92 apiece but now the share prices have climbed to nearly Rs 840, which means that in the last two decades an investment of Rs 1 lakh would have turned into more than Rs 1 crore.
The movement of shares in the last year has drastically shifted from its strong position to its lowest. As per the report by MoneyControl, on August 19, 2022, it was at Rs 1,050.55 level. However, it slipped 30 per cent in 5 months and by January 27, this year, the price came down to Rs 737.60.
IDBI Capital has noted that the share price has been 740 on the weekly charts for the last 28 weeks. Apart from this, the relative strength index (RSI) has been ruling higher which is providing strength to its price movement.
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The brokerage recommended a buy rating on the stock with a target price of Rs 1,050. It also advised that the investors need to stop loss at Rs 760.
