Bharat Coking Coal shares surge over 6% after falling for 6 sessions - What's next for the stock?
Bharat Coking Coal shares surged over 6% in intraday trade on the BSE on Monday, 26 October, looking set to snap their six-session losing streak. Bharat Coking Coal share price opened at ₹31.36 against its previous close of ₹29.78 and jumped 6.5% to an intraday high of ₹31.73.
Why are Bharat Coking Coal shares rising?
The stock jumped following the announcement of Q2FY27 results. The company's revenue from operations for the quarter stood at ₹4,412.6 crore compared to ₹3,173.25 crore.
Profit for the quarter came at ₹123.74 crore compared to a loss of ₹53 crore in the same quarter last year.
What's next for the stock?
The stock is down 10% in last 6 months. It has been gradually moving lower in a lower highs and lower lows formation below its key moving averages.
According to Vipin Kumar, AVP-Research at Globe Capital Market, the chart structure remains negative as long as the stock is trading below the ₹33.50– ₹35.50 zone, and any bounce-back rally towards these levels will attract sellers' interest around that zone. Immediate support on the downside is placed around the ₹29– ₹28 zone, said Kumar.
Aditya Thukral, founder and analyst at AT Research and Risk Managers, said Bharat Coking Coal has been in a downtrend with the formation of lower highs and lower lows.
"The stock price is sustaining below all the major EMA’s with negative crossovers between them. The structure looks incomplete on the downside, and the stock price is prone to further fall, making a fresh 52-week low below ₹28.92. A rise towards the fresh resistance formed near ₹32.50 will be an exit opportunity for buyers," said Thukral.
"The stock is in a downtrend, and a rise near the resistance level of ₹32.50 is an exit opportunity for short-term buyers. As the stock has recently listed on stock exchanges via an OFS from the parent company, Coal India Limited, the lack of available data doesn’t allow us to comment on the long-term trend of the stock price," Thukral said.