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Continuing with strong momentum in the small-cap space, the share price of Stylam Industries (NS:) was on a roll today. The company is in the business of manufacturing laminates such as digital laminates, chemical resistant laminates etc., having a market capitalization of INR 2,732 crore.
The stock has been one of the best performers in the small-cap space since the broader market rally started in April 2023. From a low of INR 945 on 29 March 2023, the stock has risen to INR 1,747.65 today, denoting a gigantic price rise of 84%.
Image Description: Daily chart of Stylam Industries with volume bars at the bottom
Image Source: Investing.com
Although some of the credit can also be given to the market-wide buying spree, investors’ special interest in the stock should not be ignored. Today, the stock rallied 8.19% to INR 1,747.65 and delivered a strong Cup and Handle breakout on the daily chart. This is a bullish trend continuation pattern and is known to resume the prior uptrend, upon a successful breakout.
The volume on this special day has also been high, at over 150.9K shares, which is a massive 463% higher than the 10-day average of a mere 26.8K shares. This magnitude of volume expansion on such a critical day holds quite a high importance. Also, as this pattern has been formed at around the all-time high levels, the breakout also establishes the resumption of the bull run in the counter.
As there are no overhead supply zones left, there would probably be no hindrance that will be faced by the stock on its way to new highs. As per the dimensions of the pattern, the stock can travel to the next level of INR 1,985 – INR 2,000. The breakout seems almost confirmed and traders can place a stop loss below the INR 1,550 in case they plan to initiate long positions.
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