Stock of the week - Kajaria Ceramics Limited For Target Rs.1442 By GEPL Capital
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Kajaria Ceramics
Observation
* KAJARIACER on the higher time frame can be seen forming a higher high higher low pattern since May 2020. During this entire phase the prices managed to sustain above the 20 Week SMA.
* On the weekly charts we can see that the prices have been moving higher for the past 3 weeks after bouncing off the 1045 mark (Breakout) level.
* On the daily time frame we can see that the prices has been riding the upper Bollinger for the past couple of sessions. The Bands too can be seen expanding as the prices move higher indicating, increasing volatility.
* On the indicator front the RSI plotted on the weekly time frame can be seen moving higher after forming a bullish hinge near the 50 mark, indictaing increasing bullish momentum as the prices move higher.
* In the sessions to come, we believe that the stock has potential to move higher toward the 1357 (recent swing high) mark. If the prices manage to breach above this level we might see a move towards 1441 (78.6% extension level of the rise from 851-1355 projected from 1045).
* On the down side the 1176 (20 Day SMA) will act as a support level, if the prices breach below this level we might see the prices move lower towards the 1045.
Inference & Expectations
* KAJARIACER from the long term perspective is in a strong bullish trend.
* On the medium and the short term charts we can see that the prices are moving higher after a correction. The technical parameters and the price action point towards increasing bullish momentum in the prices.
* We expect the bullish momentum to take the prices higher towards the 1357 mark, if the prices breach above the 1357 mark, we might see the price move higher towards the 1441 level.
* On the downside the 1176 mark will act as a support level. If this level is breached, our bullish view will be negated and we might see the prices move lower towards 1045.
* One can buy KAJARIACER at current levels with a target of 1357 and 1441 with a strict stop loss of 1176 on closing basis.
Kajaria Ceramics : LTP : 1239.05 Target: ₹1442 Stop Loss : 1176
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