Opposite to the expectations, the broader markets recovered sharply after yesterday’s fall, despite the Israel-Palestine war intensifying as the days passed by. The benchmark index ended the session 0.91% up at 19,689.85 and interestingly all sectoral indices closed in the green.

One stock that caught the attention of investors today was RedTape Limited (NS:). The company is a well-known footwear manufacturer with a market capitalization of INR 6,486 crore. In FY23, Redtape clocked a revenue of INR 1,474.83 crore, a mammoth 386% YoY growth over FY22 revenue of INR 303.28 crore.

Image Description: Daily chart of Redtape with volume bars at the bottom

Image Source: Investing.com

Consequently, the profit figure also jumped 389.5% YoY to INR 142.15 crore. FIIs also hold a 2.22% stake in the company.

Coming to the technical setup, the stock recently marked its debut on the Indian exchanges on 11 August 2023 and since then it has only moved in a volatile range, without any strong one-sided direction.

Currently, the stock is recovering from the lows marked in September 2023 and is nearing towards its all-time high. Today, the share price of Redtape jumped 5.86% to INR 496.85 and is ready to cross the resistance of INR 509. As soon as it happens we might see a strong rally all the way to INR 600 in the coming months.

However, as the stock has not breached this resistance yet, traders should not jump the gun and anticipate a breakout before it actually happens.

X (formerly, Twitter) – aayushxkhanna