Cup pattern breakout witnessed in this midcap FMCG company; do you own it?

Cup pattern breakout witnessed in this midcap FMCG company; do you own it?

Indian Market
by 5paisa Research Team Last Updated: 2022-08-24T15:26:59+05:30

Jyothy Labs surged over 6% during the initial hours of Wednesday’s trading session.

With the indices witnessing positive sentiment in the past 2 trading sessions, one stock that has outperformed the peers and the broader indices is Jyothy Labs. The stock has soared by a massive 6% on Wednesday and is now up by nearly 9% in the past two trading sessions. With this, it has registered a breakout from its cup 59-week cup pattern with above-average volume. On the daily timeframe, the stock is strongly bullish, and it has formed higher highs and higher lows on the technical chart. It has climbed over 12% so far in August and is having a strong bullish sentiment.

From a technical point of view, the stock possesses strong strength in every timeframe. The 14-period weekly RSI (72.19) is in the super bullish zone and is in an upward trend. The ADX (24.33) shows strong upward movement and positivity. On the daily timeframe, the MACD has given a bullish crossover. The OBV, too, shows strong participation in the stock. The Elder Impulse system has charted bullish bars, while the TSI and KST show “long”. The stock is above all its key moving average and all of them are in an uptrend. Overall, the stock is technically strong and is expected to trade higher in times to come.

On a YTD basis, the stock is up over 36%. It is trading near a 52-week high level and can test the level of Rs 220, followed by Rs 240 in the medium term. It shows a strong trading setup and with growing fundamentals, the stock is likely to attract investors. Overall, it looks perfect for a trading setup.

Jyothy Laboratories Limited is a diversified FMCG company, working in the space of fabric whiteners, soaps, detergents, mosquito repellents and day-to-day household product use. With a market capitalisation of about Rs 7000 crore, it holds a strong presence in its domain and enjoys a good market share.

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