Trending stock: KRBL Limited

The stock of KRBL has soared about 5% in Tuesday’s trading session.

KRBL Limited is a food processing company engaged in seed development, contact farming, storage, processing, packaging, branding and marketing of basmati rice. With a market capitalization of about Rs 5780 crore, it is one the strong growing company in its sector. The stock is in limelight due to its recent run-up.

The stock of KRBL has soared about 5% in Tuesday’s trading session. It is undergoing extreme bullishness and has gained over 23% since its prior swing low of Rs 198.20. In the last four trading sessions, it has recorded a rise in its volumes and thus indicates strong trading activity. After initially falling and hitting the day’s low at Rs 230, the stock received strong buying interest at lower levels from which it gained about 8%.

Interestingly, it took support from 50-DMA before bouncing back. Also, the volume recorded today has been the highest in many days and is greater than 10-day, 30-day and 50-day average volumes.

The 14-period daily RSI entered the super bullish zone and is above its prior swing high. Moreover, the ADX has also risen above 25 and points northward, indicating a strong uptrend. The AMCD line continues to be above the signal line and zero line. THE On Balance Volume (OBV) also presents a similar structure as that of RSI and indicates strong strength from volume’s point of view. Also, the Elder Impulse system maintains a buy signal.

The stock is currently above all its key moving average except for 200-DMA, which is about 3% away. In the past one month, the stock has gained about 20% and displays short term bullishness. Considering the above points, we expect the stock to test its 200-DMA level of Rs 250, followed by Rs 265, which is its prior swing high in the short to medium term. Traders can expect decent gains from this stock as proved bullish by the technical analysis.