Recent Price Movement and Market Context
Shraddha Prime’s share price has been under pressure in the immediate term, falling by 4.78% over the past week, in stark contrast to the Sensex’s modest gain of 0.79% during the same period. This recent weakness is notable given the stock’s strong longer-term returns, with gains exceeding 103% year-to-date and an extraordinary 149.18% over the last year. Over three and five years, the stock has delivered astronomical returns of 2,588.64% and 10,317.78% respectively, far outpacing the Sensex benchmarks of 39.39% and 94.23% for those periods.
Despite the recent dip, Shraddha Prime continues to outperform its sector today by 0.43%, indicating relative resilience amid broader sector fluctuations. The stock reached an intraday high of ₹234.90, up 2.11%, but also touched a low of ₹221.80, down 3.59%, signalling volatility within the trading session.
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Technical Indicators and Trading Activity
The stock’s current price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, which typically signals a positive medium- to long-term trend. However, it is trading below its 5-day moving average, suggesting short-term weakness. This divergence often points to a temporary correction or profit-taking phase after recent gains.
Further evidence of waning short-term enthusiasm is seen in the sharp decline in investor participation. Delivery volume on 20 Nov was recorded at 8,460 shares, representing an 82.31% drop compared to the five-day average delivery volume. This significant fall in delivery volume indicates reduced conviction among investors to hold shares, often a precursor to price declines.
Additionally, the weighted average price for the day was closer to the lower end of the trading range, implying that more volume was transacted near the day’s low rather than the high. This suggests selling pressure dominated the session, pushing prices downward despite intraday rallies.
Liquidity and Trading Size
Shraddha Prime remains sufficiently liquid for trading, with the stock’s traded value allowing for a trade size of approximately ₹0.02 crore based on 2% of the five-day average traded value. This liquidity supports active trading but also means that price movements can be influenced by relatively modest volumes, especially in the short term.
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Balancing Short-Term Weakness Against Long-Term Strength
While the recent four-day decline has trimmed returns by approximately 9.47%, it is important to contextualise this within the stock’s exceptional long-term performance. Shraddha Prime’s gains over one, three, and five years dwarf the broader market’s returns, underscoring its strong growth trajectory and investor confidence over time.
The current pullback appears to be a short-term correction rather than a reversal of the underlying trend. The stock’s ability to maintain prices above key moving averages and outperform its sector today suggests that investors remain broadly positive, even as some profit-taking and reduced participation weigh on the price.
In summary, Shraddha Prime’s recent price decline on 21-Nov is primarily driven by short-term selling pressure, reduced investor participation, and profit-booking after a strong rally. However, the stock’s robust long-term fundamentals and relative outperformance of benchmarks continue to support its overall positive outlook.
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