This small-cap stock witnessed a cup pattern breakout; soars 12% on October 11

This small-cap stock witnessed a cup pattern breakout; soars 12% on October 11

Indian Market
by 5paisa Research Team Last Updated: 2022-10-11T11:40:48+05:30

The stock has also outperformed its peers and the broader market, after having soared 62% on a YTD basis.

Stock-specific action continued on Tuesday and investors bet on quality smallcap and midcap stocks at attractive levels. Meanwhile, the stock of Everest Industries (NSE Code: EVERESTIND) has jumped over 12% despite a weak market day as a strong spurt in volume take the stock higher. With this, it has registered a breakout from its 28-week cup pattern with massive volumes. A cup pattern breakout is a strong indication of a medium-term upside. Moreover, the volume was found to be greater than the 10-day, 30-day, and 50-day average volumes. It has also hit a fresh all-time high level of Rs 903.70 level on the NSE.

Apart from its positive price structure, the technical parameters also indicate strong strength in the stock. The 14-period daily RSI (77.56) is in the super bullish territory and shows strong strength. The MACD had indicated a bullish crossover recently and the follow-up move was quite strong. The OBV is rising and shows rising buying participation. The Elder Impulse system has charted consecutive bullish bars. The TSI and KST are in the bullish zone. Meanwhile, the stock has also outperformed its peers and the broader market, after having soared 62% on a YTD basis.

The June 2022 quarterly results posted by the company have been good, as revenue grew 27% YoY to Rs 451 crore, while net profit jumped 6.50% YoY to Rs 21.40 crore. In a nutshell, the stock is expected to trade higher, given its sound fundamental and bullish technical parameters. Currently, the Everest Industries share price trades at Rs 884 level on NSE. Momentum traders as well as long-term investors can keep an eye on this stock to track its further progress!

Everest Industries is a building solutions provider in India. Incorporated in 1934, Everest has a rich history in the manufacturing of building materials and Pre-Engineered Steel Buildings. With a market capitalisation of Rs 1385 crore, it is one of the fastest-growing companies in its sector.


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