Penny stock Alok Industries rallies over 11 per cent, here’s why!

What is the reason for this up-move in the stock?   

The beginning of a new month and the last one of the fiscal 2023, has been on buoyant note as NSE benchmark Nifty50 index has jumped 0.57 per cent and the broader markets are also seen trading on a firm note. Nifty Midcap and Small-Cap index are up by over 1 per cent, each.   

Among the sectoral indices, barring Nifty Pharma, all other indices are trading in green, led by Nifty Metal and Nifty PSU Bank. Talking about the advance decline ratio, it's firmly in the favour of bulls as the broader markets are seen outperforming.   

Considering the outperformance by the broader markets, there is one stock which is seen firing all guns and blazing i.e. Alok Industries.   

Alok Industries is an integrated textile company with a product range comprising of both cotton and polyester. Alok’s plants are situated at Vapi (in Gujarat) and Silvassa (Union territory near Vapi) and the company has a wide customer base across the world that includes global retail brands, importers, private labels and domestic retailers, garment & textile manufacturers and traders.  

The stock has jumped over 11 per cent on Wednesday and with this strong up-move it has recorded one of its best days in the near term. Interestingly, this up-move in the stock is seen on the back of huge volumes, total traded volume for the day is highest single day volume since last many months.   

What is the reason for this up-move in the stock?   

Well, the reason is due to circuit limit change in the stock. The price band of circuit is revised from 5 per cent to 20 per cent from March 01, 2023.   

The stock is up by nearly 20 per cent in the last five trading sessions and in the last one month it is up by 6.11 per cent.   

Do you think the stock would continue its up move, please let us know in the comment section.