KDDL, part of the gems & jewellery space, has rallied by about 300% in the last 3 years but recent momentum helped the stock to break out of the range and hit a fresh record high.
The stock rose from Rs 1,051 as on 31 January 2023 to hit a fresh record high of Rs 1,225 as on 13 February (intraday) which translates into an upside of about 17%.
The gems & jewellery smallcap stock moved in a range since October 2022 where Rs 1,150 acted as a stiff resistance while on the downside Rs 900 acted as a support.
The range breakout on the daily charts of KDDL, which is part of the S&P BSE Smallcap index, has opened room for the stock to head towards Rs 1,600 level, suggest experts.
Most of the oscillatory suggest a possible uptrend. Hence, short-term traders can look to buy the stock now or on dips towards Rs 977-1,075, they say. Supertrend indicators also triggered a buy in October on the weekly charts.
In terms of price action, the stock price is trading above most of the short and long-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
The Relative Strength Index (RSI) is at 67.4. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“KDDL stock price started its up move from Rs 603 (June 2022). The stock made a higher bottom and made a high of Rs 1,155 (October 2022). A valid correction followed making a low of Rs 907 (November 2022),” Bharat Gala, President – Technical Research, Securities, said.
“Supetrend turned positive since July 2022 till date. The stock traded in the range between Rs 900-1,150 from October 2022,” he said. Recently, the stock made a high of Rs 1,225 after giving a range breakout supported by volumes above all previous two highs, highlighted Gala.
“The KST, Vortex & MACD Oscillator indicator suggests a possible firm uptrend. The possible targets are Rs 1,600. If the stock price corrects downwards the buy levels are Rs 1,075-1,043-1,017-998-977. A stop loss to be observed in the trade is Rs 920,” he recommends.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)