Paper Mill stocks hog the limelight as the Sensex surges
The D-street started off the fresh week on high optimism, and after opening with an upside gap market continued its up-ward march and zoomed past its important psychological mark of 7800. The participation was seen across all the sectors. However, the unusual stocks which were seen buzzing on the D-street were all the Paper Mill scrips.
The Paper Mill stocks since the opening of the trading session have been in fame and these stocks have surged higher on expectations that raw material prices will descend and demand is likely to surge in the near term.
Following are the stocks which have seen a spurt in volume along with a spurt in prices:
1. West Coast Paper Mills: West Coast Paper Mill is one of the oldest and largest producers of paper for printing, writing and packaging in India. The stock is currently trading around levels of Rs 88, up by 13 per cent from its previous closing on NSE with volume of over 28 lakh shares on NSE, which is highest volume in the past four years’ time frame. Technically, the stock has witnessed breakout of Cup and Handle pattern above levels of Rs 82-83.
2. TNPL: Tamil Nadu Newsprint & Papers (TNPL), the company is primarily engaged in making paper from Bagasse, namely sugarcane waste using as little wood as possible. The company uses renewable raw materials with minimum impact on the environment. The stock is currently, trading at Rs 256.25, up by 8.83 per cent from its previous closing on NSE. The stock has clocked a volume of over 5.5 lakhs on NSE, which is highest in the past 6 months’ time. Technically, the stock has seen a breakout of a triangle consolidation pattern; however stock has immediate resistance in the zone of Rs 260-262.
3. Star Paper Mills: Star Paper Mills is currently quoting at Rs 40.35, up by 14.5 per cent from its previous closing on the NSE. The stock is trading at the highest point of the day. Stock has clocked volumes of 98,000 on NSE, which is highest volume since the month of January, 2016. Technically, the stock has witnessed breakout of Triangle pattern.
4. International Paper APPM: IPAPPM is currently quoting around levels of Rs 304, up by 3.68 per cent from its previous closing on the NSE. The stock has registered a high of Rs 311.40 on NSE and has been taking a breather after witnessing a sharp up-move. Stock has registered total volume of around 91,320 which is highest in the past 10 trading sessions. Technically, the stock has strong base around levels of Rs 280 and as long as this base is intact stock is likely to maintain its upward momentum.
5. JK Paper: JK Paper a leading paper manufacturing mill in India, is offering a wide array of paper products and premium packing board. The stock opened with an upside gap at Rs 53.65 and marked a high of Rs 54.40. However, the stock lost its steam and is currently quoting at the lowest point of the day. However, it’s still up by 2.23 per cent from its previous closing on the NSE.