TCPL Packaging Surges 9% in Early Trade: Bullish Breakout Ignites Investor Optimism

The stock that grabbed the spotlight is TCPL Packaging, a company known for manufacturing folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. It has also expanded into the flexible packaging industry, showcasing capabilities in producing printed cork-tipping paper, laminates, sleeves, and wrap-around labels.

TCPL Packaging is promoted by the esteemed Kanoria family, which boasts diversified business interests, including jute, tea, textiles, pharmaceuticals, and chemicals. Back in 1990, the Kanoria family took a significant step by venturing into folding carton manufacturing, establishing a unit in Silvassa. Over the years, TCPL has emerged as a leading supplier to the tobacco, liquor, consumer goods, and food packaging industry in India. 

From a technical standpoint, TCPL Packaging’s stock has been consolidating within a notable price range, showing lower highs and higher lows between Rs 1802 and Rs 1248.95 levels. 

Through a thorough analysis of price movements and connections to specific historical points on the chart, a breakout trendline has been identified, hinting at the presence of a Bullish up flag pattern on the daily chart. The recent consolidation has been further validated by a bullish golden crossover of the 5-13-26 DMA and the 14-day period RSI, which is placed in the super bullish zone around the 78 level. Notably, the stock successfully breached the breakout trendline of the mentioned pattern with the support of the 5 DMA, and closing above the breakout trendline level (Rs 1665 level) will confirm the breakout.

Having surpassed the breakout level of Rs 1665, TCPL Packaging has demonstrated its strength and sparked optimism among investors. The stock now eyes a potential target of approximately Rs 2081, indicating a promising gain of around 25% from the breakout level. This development has captured the attention of swing traders and short-term investors, who are advised to closely monitor the stock as it continues to exhibit robust performance, presenting an enticing opportunity for further upside potential. 

As TCPL Packaging continues to make waves in the packaging industry, market participants eagerly anticipate its journey ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.