Stock below Rs 20: Reliance-backed stock jumps 7 per cent; witnesses a solid breakout!
Delving into the realm of technical indicators, we find further reasons to be optimistic. The MACD has flashed a buy signal
Following a triumphant trio of bullish performances, the Indian benchmark indices are currently navigating a more subdued landscape, with the Nifty and Sensex witnessing a modest decline of 0.28 and 0.34 per cent, respectively. While the frontline indices experience a brief pause in their upward journey, the broader market indices persist in displaying their resilience, with the Nifty Mid-Cap and Small-Cap indices trading in positive territory.
Among the myriad of rising stars in the broader markets, one particular entity shines brightly: Alok Industries Ltd. This stock has taken center stage on Tuesday, surging by an impressive 7 per cent and trading tantalizingly close to the Rs 20 mark.
Technically, when we delve into the daily time frame of Alok Industries Ltd., we uncover a compelling narrative. The stock has recently executed a decisive breakout from a downward sloping channel that had ensnared it for the better part of two months. What makes this breakout all the more striking is the substantial surge in trading volume. Midway through the trading session, the stock had already traded more than 2.6 crore shares on the NSE, marking the highest single-day volume observed since October 19.
Delving into the realm of technical indicators, we find further reasons to be optimistic. The MACD has flashed a buy signal, offering its vote of confidence to the stock's positive outlook. Additionally, the daily RSI has recently signaled a bullish crossover and is on a rising trajectory, reinforcing the optimistic sentiment. The Average Directional Index (ADX), a measure of trend strength, stands at 17.16, indicating a prevailing uptrend. What's more, the +DI (Positive Directional Index) comfortably outpaces the -DI (Negative Directional Index) and ADX, underlining the stock's bullish strength.
Adding to the stock's allure is the significant backing it enjoys from Reliance Industries Ltd., which holds a substantial 40.01 per cent stake in the company and serves as one of its key promoters. Over the past year, the stock has recorded an impressive gain of approximately 15 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.