Prism Johnson Skyrockets Over 10% with Record Volume - A Technical Stock to Watch Out!

The stock is up by 23% on a YTD basis.

Prism Johnson Limited (PJL) has been making waves in the cement industry with a capacity of 5.6 million metric tonne per annum (MTPA) and a long track record of successful operations. With a strong presence in Uttar Pradesh (UP), Madhya Pradesh (MP), and Bihar, PJL has cement sales concentrated in the eastern UP region, selling cement under renowned brands like Champion, Champion Plus, Champion All Weather, and Duratech.

Share Price Movement

On Wednesday, PJL's stock price soared over 10% with robust volume, recording its highest single volume in the last two years with traded volume exceeding 71.5 lakh shares - surpassing its 10 and 30-day average volume. Technically, the stock has formed a strong base in the region of Rs 98-100 and has managed to sustain above its 200-WMA, indicating strong bullish momentum.

On the daily chart, the stock is trading above key moving averages, including the 20-DMA and the 50-DMA, which are pointing upwards. Daryl Guppy’s multiple moving averages is also signalling bullish strength in the stock, with the stock trading above all 12 short- and long-term moving averages, all trending upwards in sequence.

The daily 14-period RSI is pointing to bullish momentum, and the daily MACD is also pointing upwards, validating a positive bias in the stock. The Average Directional Index (ADX) is above the 25-mark, indicating strength and up-trending mode. With the +DI much above the -DI, the structure indicates bullish strength in the stock.

Stock outlook

PJL has already delivered handsome returns of over 20% on an MTD basis and is up by 23% on a YTD basis, making it a technical stock to watch out for in the cement industry.

From an O’Neil methodology perspective, the stock has an RS Rating of 63 which is Fair indicating the recent price performance. Buyer demand is at B which is evident from recent demand for the stock as Mutual Funds have raised their holding in the stock from 4.11% to 4.37% in the quarter that ended March 31, 2023. FIIs too have raised their holding from 3.46% to 3.5%.