JK Paper has already corrected 29% in the last 2 months from its 52-week high – currently trading near Rs. 450 which is its previous resistance level, now acting as a strong support for JK Paper.
On the support level – it formed a beautiful Inverted Hammer candle, which is a bullish reversal candlestick pattern and is most likely set for a Reversal.
JK Paper Target and Stoploss
- Recommendation Type – BUY
- Buy Reco Date – 10 September 2024
- Brokerage Firm – Anand Rathi
- Research Report – View Report
- Price at Recommendation – Rs. 453
- Upside Potential – 19%
- Target Period – 3 Months
- Target Price – Rs. 535
- Stoploss – Rs. 405 (on a Daily Closing Basis)
JK Paper Chart Analysis
As Seen on the Chart, JK Paper is currently trading at its support level of Rs. 450 after a 29% fall from its 52-week high in the last 2 months and now it forms an Inverted Hammer Candlestick on the daily chart on the support level – showing a so-called Buying Sentiment.
Also on the Weekly Chart, it formed a Long Legged Doji Candlestick on the Bottom which is a sign of Potential reversal as Buyers are preparing to enter the market. Buy a Bullish confirmation is recommended.
But before directly entering the market, wait for the price to rise above its 100 and 50 DEMA on the Daily chart.
JK Paper Technicals
- Currently, it is below both short and long-term moving averages on the daily chart. so, wait for it to rise above at least 50 and 100 DEMA
- The MACD is showing a rise from the bottom.
- The RSI is stable even when the price is falling, indicating strength.
From Anand Rathi’s Report –
In July 2024, JKPAPER experienced a significant rise, peaking around 632. However, since then, the stock has declined by approximately 203 points, reflecting a 32% reduction in its price. Currently, the stock seems to be stabilizing as it finds support near its 200-day Exponential Moving Average (DEMA).
This support level aligns with the 0.618 Fibonacci retracement level, indicating that the current price levels may be attractive to potential buyers. On the technical side, the Daily Relative Strength Index (RSI) shows an impulsive V-shaped structure near the oversold zone, suggesting a potential bullish reversal in the coming weeks.
Given these technical signals, investors might consider buying JKPAPER in the 440-460 zone, with an upside target of 535. However a Stoploss at 405 on a daily closing basis should be maintained to manage risk.
However, a stop-loss at 405 on a daily closing basis should be maintained to manage risk.
