Why is Anmol India Ltd falling/rising?

Short-Term Price Movement and Market Outperformance

On 13 February, Anmol India Ltd’s stock price surged by ₹1.45, marking a 12.05% increase from the previous close. This sharp rise is part of a broader short-term uptrend, with the stock gaining 13.37% over the past week, while the Sensex declined by 1.14% during the same period. The stock has also recorded a consecutive two-day gain, accumulating a 12.52% return in this brief timeframe. Such performance highlights a strong momentum shift in favour of Anmol India Ltd, distinguishing it from the broader market and its sector peers.

The stock’s intraday activity further underscores this bullish sentiment. It touched a high of ₹14.29, representing an 18.79% increase intraday, and traded within a wide range of ₹2.26, indicating heightened investor interest and volatility. The intraday volatility, calculated at 5.62%, suggests active trading and price fluctuations, which often accompany significant market moves.

Technical Indicators and Trading Patterns

From a technical perspective, Anmol India Ltd’s current price stands above its 5-day, 20-day, and 50-day moving averages, signalling positive short to medium-term momentum. However, it remains below the 100-day and 200-day moving averages, indicating that while recent trends are bullish, the stock has yet to fully recover from longer-term weakness. This mixed technical picture may attract traders looking to capitalise on short-term gains while cautioning longer-term investors about the prevailing downtrend over extended periods.

Despite the price rise, the weighted average price suggests that more volume was traded closer to the lower end of the day’s price range. This could imply some selling pressure or profit-taking at higher levels, which is typical in volatile trading sessions. Additionally, delivery volume on 12 February was 20,910 shares, down by 8.42% compared to the five-day average, indicating a slight decline in investor participation in terms of actual shareholding transfer. This reduced delivery volume may reflect cautious sentiment among longer-term holders amid the recent price surge.

Longer-Term Performance Context

While the recent price action is encouraging, Anmol India Ltd’s longer-term returns paint a more nuanced picture. Over the past year, the stock has declined by 33.07%, significantly underperforming the Sensex, which gained 8.52% in the same period. The three-year performance is even more stark, with the stock down 55.96% compared to a 36.73% rise in the benchmark. However, over a five-year horizon, Anmol India Ltd has delivered a 72.82% return, slightly outperforming the Sensex’s 60.30% gain. This suggests that despite recent setbacks, the company has demonstrated resilience and growth potential over the longer term.

Liquidity and Trading Viability

Liquidity remains adequate for trading, with the stock’s turnover supporting trade sizes of up to ₹0 crore based on 2% of the five-day average traded value. This level of liquidity ensures that investors can enter and exit positions without significant price impact, an important consideration for both retail and institutional participants.

Conclusion: Why Is Anmol India Ltd Rising?

The rise in Anmol India Ltd’s stock price on 13 February is primarily driven by strong short-term buying momentum, as evidenced by consecutive gains and significant outperformance relative to the Sensex and its sector. The stock’s ability to trade above key short-term moving averages supports this positive trend, while the intraday volatility and wide price range reflect active market participation. However, the decline in delivery volume suggests some caution among longer-term investors, possibly indicating profit-taking or selective participation.

Investors should weigh these short-term gains against the company’s longer-term underperformance over the past one to three years. While the five-year returns remain positive, the recent rally may be a corrective phase within a broader downtrend. Adequate liquidity and the stock’s relative strength in the current market environment make it an interesting candidate for traders seeking momentum plays, but longer-term investors may wish to monitor further developments before committing.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →