Why is Reliable Data falling/rising?

Consistent Outperformance Against Benchmarks

Reliable Data’s recent price movement is underpinned by its remarkable returns compared to the broader Sensex index. Over the past week, the stock surged by 5.36%, while the Sensex declined by 0.84%. This trend extends over longer horizons, with the stock delivering a 9.15% gain in the last month against the Sensex’s modest 1.02% rise. Most notably, the year-to-date (YTD) return for Reliable Data stands at an exceptional 130.86%, dwarfing the Sensex’s 8.00% gain. Over the last year, the stock has appreciated by 105.00%, compared to the Sensex’s 3.53%. These figures highlight the stock’s strong momentum and investor confidence relative to the broader market.

Technical Indicators and Price Movements

On the day in question, Reliable Data’s price action showed a mixed start, opening with a gap down of 2.35%, which could have signalled initial selling pressure. However, the stock rebounded during the trading session, reaching an intraday high of ₹165.80, a 2.47% increase from the previous close. Despite touching a low of ₹158, the stock closed near its high, indicating buying interest towards the end of the day. The closing price of ₹164.00 is just 2.29% shy of its 52-week high of ₹167.75, signalling that the stock is trading near its peak levels and maintaining upward momentum.

Further reinforcing the bullish technical outlook, Reliable Data is trading above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This alignment suggests sustained positive sentiment and a strong trend, which often attracts momentum-driven investors and traders.

Volume and Investor Participation Dynamics

Despite the positive price action, investor participation appears to be waning. Delivery volume on 09 Dec was recorded at 967 shares, marking a significant decline of 61.33% compared to the five-day average delivery volume. This drop in delivery volume suggests that fewer investors are holding shares for the long term, potentially indicating cautious sentiment or profit booking by some participants. Additionally, the weighted average price indicates that more volume was traded closer to the day’s low price, which may reflect some intraday selling pressure.

Liquidity and Trading Conditions

Reliable Data remains sufficiently liquid for trading, with the stock’s liquidity supporting trade sizes of approximately ₹0.01 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, which is favourable for both retail and institutional participants.

Summary of Factors Driving the Stock’s Rise

The rise in Reliable Data’s share price on 10-Dec can be attributed primarily to its strong relative performance against the Sensex and its sector, sustained gains over the past four consecutive days, and its proximity to a 52-week high. The stock’s ability to trade above all major moving averages signals robust technical strength, which often encourages further buying interest. However, the decline in delivery volume and the weighted average price skew towards the lower end of the day’s range suggest some caution among investors, possibly reflecting profit-taking or selective participation.

Overall, Reliable Data’s price appreciation reflects a combination of strong market momentum, technical resilience, and investor optimism, despite some signs of reduced participation. This nuanced picture is typical of stocks experiencing rapid gains, where enthusiasm is balanced by prudent profit management.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →