J Kumar Infraprojects registers a trendline breakout! What are its target levels?

JKIL has soared over 4% on July 05.

Shares of J Kumar Infraprojects Ltd soared over 4% during the early hours of Tuesday’s trading session. With this, it has registered a falling trendline breakout with above-average volumes. The volume tends to be greater than the 10-day and 30-day average volume, indicating larger participation in the stock. Also, the stock trades near its 52-week high level of Rs 307.50 and it is in a long-term uptrend.

As per the technical parameters, the 14-period daily RSI (64.12) is in the bullish territory and indicates strong strength. The MACD has given a bullish crossover above the zero line, indicating a stronger upmove. The OBV is at its peak, showing strong volumetric strength. The +DMI is well above the -DMI and ADX (33.81) indicate a strong uptrend. The Elder Impulse systems demonstrate a buy signal, while KST and TSI are already in the bullish zone. It is currently about 20% above its 50-DMA and 57% above its 200-DMA.

On a YTD basis, the stock has generated about 86% wealth for its shareholders and has also outperformed most of its peers. Looking at the price pattern, we can expect a good upmove of about 8-10% in the short to medium term. It can test the level of Rs 330 in the coming days as per the technical analysis.

However, the 20-DMA level of Rs 282 has to be watched keenly as any fall below this level can show some weakness. Also, the 20-DMA has acted as strong support in recent times. Moreover, the stock provides good swing trading opportunities and traders can expect good gains from this stock.

J Kumar Infraprojects Ltd is a smallcap construction company. It works in the design and construction of roads, bridges, flyovers, and other infra projects. With a market capitalisation of about Rs 2200 crore, it is one of the strong growing companies in its sector.