Mukul Agrawal’s small-cap stock witnesses a breakout, hits a fresh 52-week high; Tata Motors and Maruti Suzuki are its clients!

Mukul Mahavir Agrawal holds a substantial 1.61 per cent stake in the company, translating to 3,945,000 shares.

In a tumultuous day for the Indian stock market, benchmark indices grapple with a pervasive selling pressure on Tuesday, witnessing a broad decline across various sectors. The only exception to this bearish trend is the Nifty Pharma sector, which managed to stay afloat amidst the sea of red. Despite the overall gloom, there's a beacon of optimism for investors and traders as a Small-Cap gem, JTEKT India Ltd, emerges with a remarkable breakout, offering a compelling swing trading opportunity.

JTEKT India Ltd experienced a substantial surge, soaring over 8 per cent on Tuesday, reaching a fresh pinnacle of Rs 173.05 on the NSE. This ascent follows a rollercoaster journey for the stock, which saw it reach a high of Rs 168 in December 2022, only to undergo a correction exceeding 40 per cent. Remarkably, it rebounded to the Rs 168 level in August 2023, setting the stage for the formation of an ascending triangle pattern. This pattern is characterized by identical highs at Rs 168 and higher highs connecting significant swing lows from the March 2023 lows on the weekly chart.

The breakout from this ascending triangle occurred on Tuesday, accompanied by a robust uptrend and a notable trading volume of 11.5 lakh shares on the NSE. The technical indicators reinforce the positive sentiment, with the daily 14-periods RSI rebounding after establishing a base at the nine-period average. Additionally, the daily MACD is pointing northward and maintaining its position above the nine-period average, further confirming the positive bias in the stock.

Founded in 1984, JTEKT India Limited (JIN) specializes in manufacturing steering systems for the Indian passenger car and utility vehicle market. Drawing on technology from JTEKT Corporation, Japan's leading producer of passenger vehicle steering systems, JIN caters to renowned automakers in India, including Maruti Suzuki, Toyota, Tata Motors, Mahindra & Mahindra, Isuzu Motors, Honda, and Renault Nissan.

Notably, Mukul Mahavir Agrawal holds a substantial 1.61 per cent stake in the company, translating to 3,945,000 shares. As JTEKT India Ltd steers through these bullish developments, investors are presented with an intriguing opportunity to ride the wave of this emerging success story in the Indian stock market.

Disclaimer: The article is for informational purposes only and not investment advice.