Penny Stock Update: JCT locks in the upper circuit; forms a bullish engulfing pattern!

The shares of textile companies soared on bourses on Wednesday. JCT, a trending penny stock that belongs to the textile sector, was seen locked in the upper circuit on Wednesday. In Tuesday trading session the stock was locked in the lower circuit. On Wednesday the stock opened with weakness as the stock slipped up to Rs 3.55 per share on an intraday basis where it took strong support at its 20D SMA and bounced back.

Strong buying in JCT ensured that the stock gets locked in the upper circuit in Wednesday trading session. The volatile penny stocks, JCT has previously struggled to trade above Rs 4 per share.

JCT is expected to improve its liquidity and cash flow by reducing its debt. The company is also expected to sell its non-core assets (property).  This positive development can be expected to trigger some buying interest in the penny stock. A bullish engulfing pattern was formed in JCT shares on Wednesday.

The stock has gained by more than 300 per cent in 2021 alone while in one month alone the stock is up by nearly 7 per cent.