Technical Check: This heavy electric equipment maker likely to hit fresh 52-week high in next 3-4 weeks

KEC International rallied by about 30 per cent in the last 1 year compared to about 15 per cent upside seen in the Nifty50 in the same period but the recent price action suggests that the upside may not be over yet.

KEC International with a market capitalization of more than Rs 13000 cr hit a 52-week high of Rs 550 on 26 October. Since then, the trend has been sideways.

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Shares of the heavy equipment maker rose nearly 7 per cent in a week and more than 15 per cent in last 1 month.

The recent price action helped the stock to scale past multiple resistance zone placed at Rs 500 which has now opened the door for the stock to hit a fresh 52-week high and head towards Rs 600 in the next 3-4 weeks, suggest experts.

The low-beta stock is trading above most short and long-term moving averages such as 30,50,100 and 200-Days Moving Averages.

Technically, MACD is above its center and signal Line, this is a bullish indicator. The Relative Strength Index (RSI) is 64.5, RSI below 30 is considered oversold and above 70 overbought, Trendlyne data showed.

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On the weekly chart, the stock has observed one year “multiple resistance zone” breakout at 500 levels on a closing basis.

“On the weekly chart, a series of higher tops and bottoms conforms bullish sentiments. Rising volumes near breakout zone signify increased participation,” Rajesh Palviya Jain, VP Research (Head Technical & Derivatives) at Axis Securities Ltd, said.

“This buying momentum was observed from its 50 and 100 Day SMA which reconfirm positive trend. The daily, weekly and monthly strength indicator RSI is in a bullish mode which supports rising strength as well
as momentum,” he said.

Jain further added that the above analysis indicates an upside of 575-600 levels. The holding period is 3 to 4 weeks.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)