Big Breakout: Power stock below Rs 15 registers an 8-year-long breakout; Is a turnaround on the horizon for this underdog?
Against all odds, the stock has now successfully scaled the hurdle of Rs 11.10-11.15, marking a multi-year breakout after an arduous eight-year journey. Don't underestimate the power of the underdog; it might just surprise you with its remarkable journey to success.
In the world of finance, we often hear the saying, "Big things come in small packages," and it couldn't be more relevant than now. Imagine a stock priced at less than Rs 12, considered a tiny contender on the trading floor, yet in the span of just one week, it has surged by over 23 per cent, hitting a fresh 52-week high of Rs 11.55. This stock's remarkable performance echoes the essence of that famous saying - that size should not be the sole determinant of worth.
Ladies and gentlemen, the stock we're talking about today is Jaiprakash Power Ventures Ltd (JPPOWER). Established in 1994, this company engages in a multitude of activities, ranging from coal mining to sand mining, cement grinding, and the production of both thermal and hydroelectric electricity. Despite its relatively diminutive stock price, JPPOWER packs a punch in terms of potential.
Technically speaking, JPPOWER has recently achieved a breakthrough of epic proportions on the weekly chart. This achievement is no small feat, considering the stock hit a high of Rs 11.10 in 2015, came close with Rs 11.15 in January 2022, only to plummet to levels below Rs 6 shortly thereafter. However, against all odds, the stock has now successfully scaled the hurdle of Rs 11.10-11.15, marking a multi-year breakout after an arduous eight-year journey.
What's even more intriguing is that this breakout is substantiated by a surge in trading volume, with over four times the average daily volume of 15.98 crore shares in the past 50 days. Such robust participation underscores the newfound momentum propelling this stock forward.
In the world of technical indicators, the signs are resoundingly bullish. The 14-period daily Relative Strength Index (RSI) finds itself in a favorable territory, and the weekly RSI has undergone a remarkable shift, reinforcing the positive outlook. The Moving Average Convergence Divergence (MACD) on the daily chart has crossed above the zero line, while the histogram reveals an intensified bullish momentum. The same bullish fervor is mirrored in the weekly timeframe. The Average Directional Index (ADX), a measure of trend strength, stands at a robust 35.73, clearly signaling a powerful uptrend. Moreover, the +DI (positive directional indicator) consistently outpaces the -DI (negative directional indicator) and ADX, emphasizing the stock's bullish potential.
But what truly sets this stock apart is its recent Quarterly Results. After two consecutive quarters of losses in December 2022 and March 2023, JPPOWER has made a striking comeback. The company reported an operating profit of Rs 521 crore and a net profit of Rs 192 crore, giving investors newfound confidence in its potential.
Now, as we discuss this power-packed stock, we invite you to share your thoughts in the comment section. Do you hold JPPOWER in your investment portfolio? This could be a golden opportunity hidden in a small package, and it's making waves on D-Street for all the right reasons. Don't underestimate the power of the underdog; it might just surprise you with its remarkable journey to success.
Disclaimer: The article is for informational purposes only and not investment advice.
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