Top trending textile stock below Rs 50: Alok Industries

Alok Industries is an integrated textile company with a product range comprising cotton and polyester goods. The company’s main plants are located in Vapi (Gujarat) & Silvassa while it has a wide customer base across the world that includes global retail brands, importers, private labels, and domestic clientele.  

The stock is in on cloud nine today as it soared nearly 9 per cent along with decent volume seen in the first hour of the trade itself. The total traded volume in the first hour itself is 2.84 crore shares, which is more than 50 per cent of the total traded volume in the prior trading session.   

The share price of Alok Industries was seen consolidating in the range of Rs 32.25-Rs 20.65 since Mid-June 2021. On Monday, the stock price managed to resolve higher from the range, indicating culmination of corrective phase and resumption of the next leg of upmove.   

Structurally, the stock has been making a higher high and higher low on the weekly chart, indicating a positive price structure. As the stock is trading at a 31-week high, all the short and long-term moving averages are trending upside. The 20, 50 & 200-DMA are clearly trending up and moreover, they are in the desired sequence.   

Among the oscillators, the daily RSI is in a rising trajectory indicating strong momentum and moreover, it's in a super bullish territory. The average directional index (ADX) is at 37.66, which shows strength and this ADX is in uptrending mode. The +DI is much above the -DI. This structure is indicating the bullish strength in the stock.   

Considering the above factors, the stock ticks all the boxes of a perfect set-up based on the technical parameters and hence, it should be on the watchlist of the market participants.