This Shipping Company Stock Offered 27% Returns In Just 3 Days

The shares of GE Shipping amid volatility in the markets have provided return of 27% considering Friday's closing price of Rs. 314.9. On the NSE, the shares were last trading at Rs. 401, while on the BSE the price was at Rs. 402.4 per share.

Notably, on Wednesday, amid boost up market sentiment, the shipping company posted gains of close to 17% on the BSE. It is also the stock's over three-year high price.

Why the gains in the shipping stock price?

As per a Reuters report, main sea freight index of the Baltic exchange surged on Tuesday on the back capesize vessel rates in nearly 11 years. The Baltic dry index tracking rates for capesize, panamax and supramax vessels ferrying dry bulk commodities gained 3.4 per cent.

Why gains in the GE Shipping counter in 3-days of 27%?

The company's board will meet on May 7 to discuss the issue of NCDs up to an amount not over Rs. 1000 crore by way of private placement. The board will also to consider and approve audited financial results for the year ended March 31, 2021 and recommendation of final dividend, if any, the company said.

Also, HDFC Mutual Fund has taken an exposure of additional over 2 percent stake in the company via open market. Post the acquisition, the stake of HDFC mutual fund has increased to 7.235 from the 5.13% earlier.

GE Shipping Share Price Forecast- Strategy-Hold

The stock in today's trade (May 6, 2021) has again hit a new high of Rs. 418.8. For the scrip, Angel Broking analysts suggest a Hold strategy. Currently huge volumes in the stock are favouring the stock's price rise. There is expected that for the near term, momentum in the price shall continue after the stock has breached the resistance of Rs. 340.

For a short to medium term, traders can continue to remain put in the stock and add on further corrections.. The immediate support for the stock is placed around Rs 360 while the resistance is seen in the range of Rs 435-445.

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