KEC International Stock Breaks Multi-Month Range, Expect Strong Growth

It is also meeting the Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in a clear uptrend.  

Amidst the chaos and uncertainty of the Karnataka Election, there is another ‘K’ captivating the market’s attention – a high-flying stock that’s setting the scene ablaze with a stunning breakout and a fresh 52-week high. This enigmatic ‘K’ stock is the talk of the town, with traders and investors alike gripped by its spellbinding ascent. In a world where anything can happen, one thing is certain – this ‘K’ is on a mission to conquer all. 

The stock name is KEC International Ltd, it has gained nearly 4% to hit a fresh 52-week high and at the same time, the stock has witnessed a breakout of a consolidation range. The stock earlier in the month of January made a high of Rs 525.95 and thereafter, it corrected nearly 17% and the stock started forming a strong base around the level of Rs 435-447 and recently, it once again faced some supply around its previous high. Now, this structure of parallel support and resistance led to the formation of a 5-month-long rectangle pattern. On Wednesday, it managed to witness a resolute breakout of a 5-month-long rectangle pattern backed by above-average volume.  

As the stock is trading at a 52-week high, it is above all the short and long-term moving averages. All these moving averages are trending up and they are in a desired sequence. It is also meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in a clear uptrend.  

In Q4FY23, the company reported a robust revenue growth of 29%, with the highest-ever quarterly revenues of Rs 5,525 crore in Q4. T&D, Civil and Oil & Gas businesses delivered strong performance during the quarter. The margins for the quarter improved by 50bps vis-à-vis Q3FY23 to 5.1%. Company secured orders of over Rs 7,000 crore in Q4, recording a breath-taking growth of over 50% vis-à-vis, Q4 last year. Orders have been largely contributed by the T&D and Civil businesses.  

With a strong order book and strong T&D outlook, the sky is the limit for the stock and technically, the pattern target suggests the level of Rs 600 is likely to be achieved in the medium to long term.