Stocks to buy: Chart Check: Up 40% in a month, this smallcap breaks above 13-years falling trendline; time to buy? – Blue Barrows

, part of the S&P BSE Smallcap index, has risen by about 40 per cent in a month and the recent price action suggests that the upside is likely to continue.

The stock rose from Rs 127.95 recorded on August 29 to Rs 180.45 as on September 28 which translates into an upside of more than 40 per cent.

The stock broke above Rs 200 levels for the first time since 2018 in September 2022 to hit a fresh high of Rs 200.80. The technical chart patterns suggest a move above Rs 300 in the next 3-6 months, suggest experts.

Traders who missed the rally which started in August can look at buying the stock on dips for a possible target of Rs 345 in the next 3-6 months, suggest experts.

The stock also broke above the neckline of the 13-year falling trendline placed at Rs 173 with strong volumes which suggests that the bulls are here to stay.

Jai Corp has traditionally been into manufacturing businesses like steel, plastic processing, and spinning yarn.

Based on the quarterly chart analysis, if the stock manages to close above Rs 173 by 30th September as well the uptrend will get confirmed, and any dips towards Rs 150 can be used as a buying opportunity.


The Relative Strength Index (RSI) is at 60.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center line, but below the signal line.

On the price action front, the stock is trading well above crucial long-term moving averages of 100 and 200-DMA. It is trading below 5 and 10-DMA. It is still trading above the 50-DMA which is a positive sign for the bulls.

“Jai Corp has broken out of its 13 years falling trend line @ 173 levels with strong volumes. A quarterly close above the trend line will confirm the pattern & any dip in this stock towards the support zone of 155-150 should be used as a buying opportunity,” Sujit Deodhar, Head – Technical Analyst, Wellworth Share & Stock Broking, said.

“Technical indicator MACD exhibits a Buy signal above zero line supporting bullish stance. The stock was in consolidation for the past four quarters by forming a Doji candlestick pattern which is indecisive in nature,” he said.

“The stock in this quarter posted a strong Bullish candlestick bar with a golden crossover of long-term moving averages (50,100 & 200) on daily charts. Price target projected for this pattern is placed at Rs 345 levels & a move below 120 levels on a closing basis would negate the same,” recommends Deodhar.

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