Mumbai: The domestic stock market fell heavily on Friday, the last trading day of the week amid weak global cues. There is a possibility of further hike in interest rates. Along with this, it is also believed that high interest rates can remain for a long time. Due to this there is apprehension among the investors and due to this there is a huge decline in the markets around the world. Along with this, the Nifty 50 index has declined by more than 1.20 per cent in early trade. However, despite the weak sentiment in the market, heavy buying is seen in many stocks. This also includes the stock of KSB. It gained eight per cent in early trade and was among the top trending stocks.
Technically, the stock is trading at breakout levels of 18 month cup pattern with above average volume. It is trading above all the moving averages indicating bullish price action in the stock. Its volume on Friday was higher than the 30 day average volume. This is giving strong buy signal in this stock. Its 14-day period daily (76.38) is in the super bullish zone and is indicating strength in the stock. Its 14 day ADX (41.19) is also rising and showing strong trend. Its elder impulse system is giving fresh buy signal. Due to this bullish setup, the stock is expected to outperform the broader market in the near term. Its medium term resistance lies at Rs 2200, after which it can test Rs 2300 levels. Its immediate support is 5 DMA level at Rs.1980. Currently KSB stock is trading at Rs 2120 on NSE. Traders and investors should keep a close watch on this stock in the days to come. This article is powered by Dalal Street Investment Journal, India’s No. 1 Investment Magazine. Click here to get regular updates about Winning Stocks and Recommendations.
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