kalpataru power share price: Chart Check: Kalpataru Power hits fresh 52-week high, gives breakout above multi-year downward sloping trendline

and Transmission, part of the industrial space, pared gains after hitting a fresh 52-week high of Rs 481 on October 31, but the rally may not be over yet.

The stock has rallied by about 40% from its 52-week low of Rs 332 recorded on 11 May 2022, and if the momentum continues, the stock could head towards Rs 600 levels in the next 6 months, suggest experts.

The stock has recently given a breakout from a downward-sloping trendline on the weekly charts which suggests that the bulls are here to stay and there is plenty of demand at lower levels.

Most of the technical indicators such as Aroon Up/Down, MACD & KST indicators suggest a possible firm uptrend for the engineering and construction company.

In terms of price action, the stock price is trading above most of the crucial short- and long-term moving averages such as 10,20,30,50,100 and 200-DMA.

The Relative Strength Index (RSI) is at 62.3. RSI below 30 is considered oversold and above 70 is considered overbought, Trendline data showed. MACD is above its center and signal Line, which is a bullish indicator.

“The stock price started its downfall from Rs 554 (July 2019). The stock made lower tops and lower bottoms followed by trading below averages and hit a low of Rs 170 in March 2020 after the Covid event,” Bharat Gala, President – Technical Research, Securities Ltd., said.

The stock attracted value-buying interest at lower levels and trended up to Rs 494 in July ’21 but failed to cross its all-time high of Rs 554. It consolidated in the range of (Rs 330-475) from Sept 21 to Oct 22.

“Recently, the stock gave a Pattern & trend line (Connecting July 2019 & Oct 22) breakout & made a high of Rs 477 above the previous 4 Swing highs. It also started trading above averages which itself are trending upwards,” he said.

“The Aroon Up/Down, MACD & KST indicator suggests a possible firm uptrend. The possible target is Rs 600-750 in the next 6 months,” recommends Gala.

“If the stock price corrects downwards, the buy levels are Rs (447-429)-415-(401-392). Stop Loss to be observed in the trade is Rs 370,” he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)