Small-cap stock breakout alert: Filatex India zooms over 5 per cent

Filatex India is among the country’s leading manufacturers of polyester filament yarn. With a foray into manufacturing in 1994 with monofilament yarn, today, the company fulfils emerging garment needs of millions and adds extra mileage to India’s developing textile industry. The company manufactures polyester and polypropylene multifilament yarn and polyester chips at its two production facilities.   

The stock is seen buzzing on the bourses today as it has jumped  over 5 per cent along with decent volumes. It has gained as much as 18 per cent in the last two trading sessions. It had formed an opening white Marubozu candle as after opening, the price rose, forming a long body without lower shadow. However, it has a small upper shadow as the closing price was a little below the day’s high. Moreover, the volumes were pretty much robust as the stock recorded its highest single-day volume since May 7. In addition to this, the stock had witnessed a breakout of descending channel pattern.   

The 14-period RSI on the daily chart has witnessed a loud move and entered into bullish territory. Furthermore, the +DMI is much above the -DMI and ADX.   

Recently, the company released a press release regarding search operation by Income Tax Authorities. The search operation was concluded by the concerned authorities late at night on September 4, 2021. No assets of the company have been seized, pursuant to such operation. It is further clarified to all the stakeholders that the said operations have not materially impacted the business operations/activities undertaken by the company.