Praj Industries sees a triangle breakout despite market weakness! Time to buy?
Shares of PRAJIND rose over 2% during the initial hours of Friday’s trading session and registered a breakout from its triangle pattern with good volumes.
On the technical chart, shares of PRAJIND formed a bullish strong candle on Friday and are trading near its day’s high. It was going through a downtrend in the past few weeks and had lost about 35% of its value from its recent swing high. However, it has been consolidating for sixteen trading sessions and had formed a triangle pattern. Since its prior swing low of Rs 289, the stock has jumped about 17% and has recorded good volumes.
As per the technical parameters, the stock looks bullish for the short term. The 14-period daily RSI (50.49) has also registered a triangle pattern breakout. This is a sign of bullishness. Moreover, the MACD histogram is rising and indicates a positive move in the stock. The On Balance Volume (OBV) is at its peak, suggesting stronger strength from the volume’s perspective.
Moreover, the Elder Impulse system has indicated a fresh buy whereas TSI and KST indicators also maintain a bullish view for this stock. The Relative Strength (index) demonstrates an outperformance of this stock against the broader market.
Overall, the stock is bullish and is expected to trade higher in near future. It is one of those few stocks which have shown strength against the weakening market. This being said, the stock is expected to test the level of Rs 358, followed by Rs 372 in the short to medium term. One can place a stop loss below its 20-DMA at Rs 330.
Praj Industries Ltd is a leading biofuel Technology Company providing several processes and systems for ethanol and biodiesel productions. It is a midcap company with a market capitalisation of Rs 6263 crore. It has a strong presence in its sector and is expected to grow at a faster pace in times to come.
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