Laurus Labs Could See Profit Booking After Overbought Rally: SEBI RA Anupam Bajpai

After rallying for eleven consecutive sessions, Laurus Labs could finally be seeing a short pullback. The stock hit fresh record highs and clocked over 20% gains in a rally that extended from June 20 to July 4.

At the time of writing, Laurus Labs stock was down 0.3% to ₹773.50.

According to SEBI-registered analyst Anupam Bajpai, technical indicators now suggest that the Laurus Labs stock may be entering overbought territory, potentially leading to a consolidation phase.

Between July 1 and 4, daily candlesticks consistently formed outside the upper Bollinger Band, indicating an overextended move, he observed. This price action suggests the stock may have advanced too quickly, signaling a potential pullback or period of consolidation ahead.

The Relative Strength Index (RSI) has surged to 83, well above the overbought threshold of 70, signaling an increased risk of a near-term correction, the analyst said.

The stock could pull back to the 20-day moving average, which has served as dynamic support in past corrections. This level offers a healthier and more sustainable approach to taking on positions, Bajpai added.

The company reported strong fourth quarter results, with net profit surging to ₹233.6 crore from ₹75.6 crore in the same period last year.

Retail sentiment on Stocktwits turned ‘bullish’ from ‘bearish’ a week earlier amid ‘high’ message volumes.

Year-to-date, the stock has gained more than a quarter of its total value.

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