Stock to watch tomorrow: KSB

The stock of KSB has soared about 8.83% on Monday’s trading session.

KSB Limited is engaged in the business of manufacturing of power-driven pumps and industrial valves. It is a smallcap company with the market capital of Rs 3991 crores. It has a strong presence in its industry and has increased its market share over the last five years. The company has performed exceptionally well in the last few years and has generated more than industry average net profits and revenue. With such good performance, the foreign institutional investors have increased their stake in this company.

Most of the company’s stake in being held by the promotors, which is about 66.89%. The institutions hold about 12% stake while the rest is being held by the HNIs and public.

The stock of KSB has been performing well lately and has soared about 8.83% on Monday’s trading session. Since registering the low of Rs 960, the stock has gained nearly 20% in just six trading sessions. During this period, the stock has recorded above average volume which is greater than 10-day, 30-day and 50-day average volume. This demonstrates strong trading activity in this stock,

With today’s strong price action, the stock has closed above its short term resistance level of Rs 1125. Moreover, it has closed above 20-DMA, and indicates short term bullishness. The technical indicators show improved strength in the stock. The 14-period daily RSI has taken out its prior swing high while the MACD line is well above the signal line. Along with this, the Elder Impulse System indicates a fresh buy signal. The On Balance Volume (OBV) indicates good strength in the stock from volumes point of view. Overall, the stock looks bullish for short term.

Considering the ongoing momentum, the stock has the potential to test the levels of Rs 1200 in short period. Moreover, it has tremendous potential to deliver great returns once the market stabilizes. Traders can track this stock tomorrow and look for opportunities for trading.