Swing trading opportunity in KPR Mill; watch out!

Introduction 

In a week that began on a positive note for Indian markets, one stock has left investors and analysts in awe of its impressive upward trajectory. KPR Mill Ltd, a leading vertically integrated apparel manufacturing company in India, has made a striking move that has caught the attention of market participants. With a breakout from a seven-week basing pattern and an astonishing 52-week consolidation range, the stock has surged to new heights, painting a promising picture for its future.

Let’s delve deeper into the factors that have propelled KPR Mill’s impressive run and what lies ahead for this remarkable company.

A Breakout to Remember

On Monday, KPR Mill started its trading session at Rs 630 and briefly dipped to an intraday low of Rs 627.15 on the NSE. However, the bulls took control and steered the stock higher. At present, it is trading at Rs 645.5, marking an impressive 3% increase for the day. This substantial up-move has not only shattered the constraints of a seven-week basing pattern but has also managed to break free from a long-standing 52-week consolidation range.

Unveiling the Patterns 

If we analyse the stock’s price action since June 2022, a rectangular pattern emerges, with the zone of Rs 633-639 acting as a persistent resistance level, while Rs 479 served as a reliable support level. The recent surge in price has propelled KPR Mill beyond these boundaries, signifying a resolute breakout. This breakout is further supported by robust trading volumes, with over 5.5 lakh shares already traded, exceeding both the 10-day and 30-day average volumes. This surge in participation highlights a larger market interest in the stock’s upward trajectory.

Technical Indicators Favor the Bulls 

KPR Mill’s current trading position presents an encouraging picture from a technical analysis standpoint. The stock is trading at a fresh 52-week high and is comfortably positioned above short and long-term moving averages. Notably, the stock is trading above the 20-day, 50-day, and 100-day moving averages, all of which are trending upward, underscoring the stock’s strength.

Moreover, the daily Moving Average Convergence Divergence (MACD) indicator is in an uptrend and rebounding, finding support at its nine-period average. This validates the positive bias in the stock. The 14-period daily Relative Strength Index (RSI) has surpassed its previous swing high and is currently trading above the level of 60, indicating increasing bullish momentum. Additionally, the Average Directional Index (ADX) demonstrates reasonable strength, with the +DMI (positive directional movement indicator) above the -DMI (negative directional movement indicator) and the ADX itself.

Outlook and Conclusion

Considering the impressive breakout, the strong technical indicators, and the stock’s upward trajectory, it appears that KPR Mill Ltd is poised to continue its northward journey. With a vertically integrated apparel manufacturing business model, 12 hi-tech manufacturing facilities, and a vast workforce of over 30,000 employees, KPR Mill is well-positioned to capitalize on its success.

As the stock garners attention for its exceptional performance, investors and traders should keep a close watch on KPR Mill Ltd. With its compelling breakout, strong technical indicators, and promising business fundamentals, this stock has the potential to be a game-changer in the Indian market.