Markets opened on a positive note but somehow bulls lost their strength thus nifty witnessed some selling pressure. Currently, Nifty is trading around the day’s low level but some stocks from the consumer durable sector like TTK Prestige, and Orient Electric showed relative strength in such weak sentiments. One stock from the same sector registered a breakout of a trend reversal price pattern named “Inverted head and shoulder” by rallying more than 6% in today’s trading session.
The stock is Rushil Décor Ltd, which is engaged in the manufacture and sale of fiberboard and laminated products. It operates through the following segments: Decorative Laminated Sheets, Medium Density Fiber Board, and Polyvinyl Chloride Boards. The company was founded on May 24, 1993, and is headquartered in Ahmedabad, India.
Company has delivered good profit growth of 20.2% CAGR over the last 5 years and also managed to reduce the Debtor days and the best part is, the promoter holding has increased by 1.36% over the last quarter.
Technically, the stock is in a downtrend since September 2022. Recently stock witnessed a strong bounce from the lows of March 29, 2023 (Rs 204.25) and made a high of Rs 306.80 on April 28, 2023. From this level, it again entered in consolidation zone and made a low of Rs 242.50 on May 31, 2023.
Interestingly on the same day, it witnessed strong buying interest and rallied almost 25% in the next 5 trading sessions only. This trading action registered the breakout of the inverted head and shoulder price pattern in which if we draw the trendline from the high of March 9, 2023 (Rs 315.40) and April 28, 2023 (Rs 306.80) will get the neckline of the pattern. Today stock surpassed this neckline with strong volumes in the last 30 days.
The minimum possible targets of this pattern will be around Rs 410 which is more than 30% from the current levels (Rs 313.40). Swing traders and long-term investors looking for opportunities in the consumer durable sector can add this stock to their watchlist.
Markets opened on a positive note but somehow bulls lost their strength thus nifty witnessed some selling pressure. Currently, Nifty is trading around the day’s low level but some stocks from the consumer durable sector like TTK Prestige, and Orient Electric showed relative strength in such weak sentiments. One stock from the same sector registered a breakout of a trend reversal price pattern named “Inverted head and shoulder” by rallying more than 6% in today’s trading session.
The stock is Rushil Décor Ltd, which is engaged in the manufacture and sale of fiberboard and laminated products. It operates through the following segments: Decorative Laminated Sheets, Medium Density Fiber Board, and Polyvinyl Chloride Boards. The company was founded on May 24, 1993, and is headquartered in Ahmedabad, India.
Company has delivered good profit growth of 20.2% CAGR over the last 5 years and also managed to reduce the Debtor days and the best part is, the promoter holding has increased by 1.36% over the last quarter.
Technically, the stock is in a downtrend since September 2022. Recently stock witnessed a strong bounce from the lows of March 29, 2023 (Rs 204.25) and made a high of Rs 306.80 on April 28, 2023. From this level, it again entered in consolidation zone and made a low of Rs 242.50 on May 31, 2023.
Interestingly on the same day, it witnessed strong buying interest and rallied almost 25% in the next 5 trading sessions only. This trading action registered the breakout of the inverted head and shoulder price pattern in which if we draw the trendline from the high of March 9, 2023 (Rs 315.40) and April 28, 2023 (Rs 306.80) will get the neckline of the pattern. Today stock surpassed this neckline with strong volumes in the last 30 days.
The minimum possible targets of this pattern will be around Rs 410 which is more than 30% from the current levels (Rs 313.40). Swing traders and long-term investors looking for opportunities in the consumer durable sector can add this stock to their watchlist.
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