Kolte-Patil Developers surge nearly 13 per cent; gives trendline breakout
The stock of Kolte-Patil Developers Limited has given a downward sloping trendline breakout, formed by connecting swing highs from April 2020. The breakout was supported by robust volumes. Additionally, the stock has formed a sizeable bullish candle on the breakout day, adding strength to the breakout.
The stock has successfully managed to close above its crucial medium-term moving average i.e. 100-day EMA after a span of over six months. The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to sustain above the 60-mark after a span of over three months. The MACD is above the zero line & signal line and the MACD histogram suggests bullish momentum. And most importantly, the MACD line crossed the prior swing highs.
In the daily timeframe, ADX is 21.38 and suggests that the trend is yet to be developed. Directional indicators continue in the ‘buy’ mode as +DI continues above –DI.
Going ahead, the zone of Rs 152-Rs 150 is likely to act as strong support as the 20-day EMA and 50-day EMA are placed in that region. While on the upside, the level of Rs 182, followed by Rs 192, would be seen as the next resistance zone for the stock.
On Friday, the stock of Kolte-Patil Developers closed at Rs 171.80 per share, surged by 12.88 per cent. The stock opened at Rs 153.20 per share and hit an intraday high of Rs 174.80 and a low of Rs 151.20 per share on NSE.