Smallcap auto stock skyrockets 44% in 2 days. Should you buy or sell?

Auto manufacturers will soon have to install air conditioners inside driver cabins of trucks, Gadkari said.

“I have signed the file that mandates air conditioning in truck driver compartments. We must ensure that people who drive the trucks are comfortable,” Gadkari said at an auto industry event called ‘Desh Chaalak – Recognising those who move India’.

“Our drivers operate vehicles in harsh temperatures of 43…47 degrees and we must imagine the condition of drivers. I was keen to introduce the AC cabin after I became a minister. But some people opposed it saying the cost of trucks will go up. I have signed the file that all truck cabins will be AC cabins,” he said.

At 10.10 am, the stock was trading 14.1% higher at Rs 496 over its last day’s closing price of Rs 434.5 apiece. On a year-to-date, the stock has surged 60%, while it has jumped 73% in the last one year.

“Subros had been trading in a narrow range for the last two years. The stock has recently given a breakout from the range on the daily charts with strong volumes. On the long-term charts, the stock has been trading in an ascending channel pattern on the weekly charts since 2009. The stock witnessed a strong reversal on the monthly charts from the lower band of the channel support,” Gaurav Bissa, VP at InCred Equities, said.

“The stock has also had a 5-year breakout at 425 levels implying the stock can witness a strong upside going forward. RSI is still below overbought levels and MACD has witnessed a bullish crossover on the monthly charts suggesting the stock can start a fresh uptrend,” Bissa added.Bissa further stated, “Fresh buying at current levels is not advised as the stock is considerably higher from the breakout levels, however, those who bought the stock earlier can hold for another 20 to 30 per cent higher upside levels in the coming months. One can add the stock on a decline towards 430-450 levels which will make risk-reward quite lucrative for a positional buy.”

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)