Jindal Photo Stock is About to Register a Long-term Breakout; Do You Own It?

On Tuesday, Nifty opened gap up and witnessed strong profit booking to trade around day’s low. The FMCG sector registered a breakout on weekly charts and traded higher from the last few days. On Tuesday, too, some FMCG sector stocks were doing quite well and one stock from the same sector is on the verge of technical breakout of continuation pattern named “Bullish Flag pattern”. 

The Company is Jindal Photo Ltd, incorporated in 1986 engaged in the manufacturing, production, sale and distribution of photographic products. The firm is also involved in holding strategic investments in securities of group companies and providing management consultancy. The company was founded in 1986 and is headquartered in New Delhi, India. 

Technically, on the weekly chart, this proven multibagger stock exhibited a remarkable rally, surging from around Rs 7.25 to Rs 484.85 between March 2020 and November 2021. Subsequently, the stock retraced this multibagger rally, finding support at the golden Fibonacci ratio of 61.8% in May 2022.

From this significant support level, the stock initiated another rally, soaring from Rs 175.2 to Rs 428. However, it experienced a loss of momentum once again and retraced the previous upward movement. This created a consolidation formation characterized by higher lows and lower highs.

As of now, the stock is trading at Rs 377.5, with the weekly closing poised to determine the next move. A conclusive weekly close above the trendline, drawn from the highs of November 2021 and October 2022, would confirm the breakout of the continuation pattern.

On daily charts, the stock registered a breakout from continuation pattern along with a trend reversal price pattern by rallying more than 13% with strong volumes. Today it closed above multiple swing highs and above the high of the last 4 months. 

Considering all these factors, one can expect some more bullishness in the upcoming trading sessions. Breakout trader’s and long-term investors can add this stock to their watchlist.