In the first trading session of the week, Nifty opened nearly flat but traded higher as the day progressed. It retraced almost all the negative move of last 3 trading sessions and any closing around day’s high will form bullish candlestick pattern morning star. In such bullish sentiments, one stock from packaging sector has grabbed investors’ attention on D-street, as it surged more than 12% to hit the intraday high of Rs 41.30 on NSE.
The stock is TPL Plastech Ltd (NSE code – TPLPLASTEH), engaged in the business of manufacturing polymer based industrial packaging products like drums and jerry cans, narrow mouth drums, narrow and wide mouth carboys, open top drums-bulk and medium. It caters to customers in industries like Chemicals, Petrochemicals, Specialty Chemicals, Plasticizers, Pharmaceutical, FMCG, Food Products etc. The company was founded on September 30, 1992 and is headquartered in Mumbai, India.
Technically, on weekly charts in the mid-week of September 2021, it made high of Rs 45.75. From there, it lost momentum and started retracing its previous rally in which it almost touched the 61.8% retracement ratio and made a low of Rs 21.8 by making lower highs and lower lows. After this, it again tried to reclaim the last swing high in October 2022 but unfortunately it witnessed selling pressure on higher levels and entered in consolidation. Now it is trading just below the trendline drawn from these 2 highs.
On daily charts, the stock registered a breakout from trend reversal price pattern as it rallied more than 18% higher from last trading session and closed above the neckline of the pattern drawn from the highs of February 2, 2023 and April 20, 2023 with strong volumes of more than 1 million which is above 30 days moving average. On Monday, it opened gap up with strong volumes and traded higher to around the Rs 41, close to the day’s high. Any closing above Rs 43 will confirm the breakout on monthly, weekly and daily charts which makes it attractive for high momentum trading and long-term investing. Moreover, the technical parameters and momentum oscillators also indicate positive bias of the stock.
Traders should keep a close eye on this stock for upcoming days.
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