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Looking at the index, which is trading flat for the day, as of 12:05 PM IST, investors might not feel the bullishness of a few counters from this space, unless they look at Escorts Kubota Ltd (NS:).
It is a well-known tractor manufacturer with a market capitalization of INR 34,147 crore and trades at a TTM P/E ratio of 43.44, compared to the sector’s average of 46.06. The company posted a stellar Q1 FY24 earnings report, clocking an 18.7% YoY jump in revenue to INR 2,454.19 crore, while the net income more than doubled to INR 289.9 crore.
Image Description: Daily chart of Escorts Kubota with volume bars at the bottom
Image Source: Investing.com
The stock has come on my radar as it rallied 2.3% to INR 3,213 and surged past its falling trendline resistance on the daily chart. The stock is already in a bull run and was taking a breather as profit booking kicked in from the first week of September 2023. This minor dip seems to be getting over and the stock is now gearing up to continue its rally.
Such trendline breaks are a good indication of a transition point between the correction to the continuation of the broader trend. As the stock is trading around its all-time highs, no major resistance levels are present above the CMP. For this week, traders can eye for INR 3,267 as a good profit booking level.
Read More: Mastering Risk: The Vital Role of Stop Loss Orders in Trading
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