Stock at an all-time high: Kitex Garments

resr 5paisa Research Team 15th December 2022 - 08:24 am
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 In the month of January, the stock has rallied nearly 40%. 

The stock of Kitex Garment is trending today as it hit a fresh 52-week high of Rs 284. It has surged by a massive 12% today and has recorded huge volume with the process. In the first week of January, the stock gave a breakout from its 25-week cup pattern which was followed by a retracement and retested the breakout level of Rs 224 this week. The stock bounced back strongly thereafter and has confirmed the breakout.

Moreover, huge buying interest was seen at this breakout level, as it is evident from the fact that huge volumes were recorded during the period. It formed support near 20-DMA before bouncing sharply. Since then, the stock has rallied for three consecutive days. With this strong price action, the RSI has entered bullish territory. Along with it, the trend indicator ADX is well above 35, indicating a strong uptrend of the stock. With the stock already trading at an all-time high level, the distance between its 20-day short term moving average is over 13% and indicates huge momentum on the upside. Moreover, all the moving averages are upward sloping and indicate towards strong bullish momentum of the stock.

In the past one year, the stock has delivered about 165% returns to its shareholders and has outperformed most of its peers. In January month alone, the stock has rallied nearly 40%. With such extreme bullishness, it is well poised to surge higher into uncharted territory. Traders can look to ride such high momentum stock for good profits in a very short time!

Kitex Garments Limited is a small cap company, engaged in the manufacture of fabric and readymade garments. The company has reported decent fundamental numbers in the past five years. With a market capitalization of about Rs 1800 crore, it is one of the most promising companies in this sector.

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