Positive Breakout Stock: Financial Services Stock Gets Buy Call On Dips With 1-Year Holding Period

Since 1994, Share India has been a leading provider of technology-driven financial services. The stock has received a buy call from DRChoksey FinServ after it recently broke out above a bullish continuation pattern on the monthly chart. Avinash Nile, a research analyst with DRChoksey FinServ with experience in finance and mechanical engineering, issued a buy call on Share India Securities' stock, with a target price of Rs 2220-2230, Rs 2740-2750, based on a current buy-on-dips opportunity close to the breakout level.

Share India Securities Share Price Target

"The monthly chart for SHAREINDIA indicates that the stock is in an uptrend, characterized by a series of higher highs and higher lows. It has recently broken out above a bullish continuation pattern (Flag & Pole) on the monthly chart, with the pole starting from the lows of December 2020. Using the Fibonacci extension, the projected upside targets are identified as first target is the 61.8% level at 2225, and the final target is placed at the 100% level at 2744. Bullish momentum can be regained, if the stock trades above the immediate swing high from February 2024, between 2025-2030," Avinash Nile commented.

"On Daily chart, a bullish gap (1529-1544) created on 12th Nov'23 and a recent low near 1559, which can act as good short-term support and buy-on-dips opportunity near this gap is preferred. The stock also presents a buy-on-dips opportunity near the breakout level of the continuation pattern, which serves as near-term support. Volume analysis supports price movement and suggests overall positive strength for the stock. Additionally, the RSI is oscillating in the upper half (above the midpoint), which is a positive. RSI Divergence can be seen on weekly charts as well, indicating profit booking near Feb' 24 highs. However, if the price falls below and sustains under the immediate swing low of 990 (intermediate support levels of 975-990), the Flag & Pole pattern would be invalidated, turning the trend to bearish," the analyst added.

"The price is expected to experience a throwback to the breakout zone of the Flag & Pole pattern, reaching its short-term support levels. A subsequent reversal and upside movement to 2025-2030 can be anticipated. Once the stock breaks above the swing high from February 2024, further upside movement to the mentioned target levels can be expected, in next one year," Avinash Nile said.

Share India Securities Upcoming Dividend

The Board of Directors have recommended a final dividend of Rs 1 per share for FY24 for the purpose of which the record date shall be announced in due course.

Share India Securities Upcoming Stock Split

"With a view to enhance liquidity of the Company's Equity Shares and to encourage participation of small investors by making Equity Shares of the Company more attractive to invest, the Board of Directors of the Company in their meeting held on May 9, 2024, considered and approved, the sub-division of the existing Equity Shares of the Company such that 1 (One) Equity Share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up be sub-divided into 5 (Five) equity shares having face value of Rs. 2/- (Rupees Two only) each fully paid up, ranking pari-passu with each other in all respects with effect from the Record Date," said Share India Securities in a regulatory filing.

Share India Securities Outlook

"Our commitment to expanding our client base has yielded significant results, with our Broking clients showing a robust growth of 27% year-on-year, reaching a total of 35,380 clients in FY24. In recognition of our strong performance and commitment to shareholder value, the Board has declared a dividend of Rs. 1 per share, bringing the total dividend for the fiscal year to Rs. 9 per share. Additionally, the Board has also approved a stock split in the ratio of 1:5. Looking ahead, we remain committed to pursuing excellence, fostering innovation, and delivering sustainable value for all our stakeholders. With a solid foundation and a clear strategic direction, we are well-positioned to capitalize on future opportunities and drive long-term growth and success," Mr. Sachin Gupta - CEO & Whole-time Director of Share India Securities Limited said.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.