Hello Audience!!! Good to see you again. Today we’re here to share an analysis of Kajaria Ceramics share which definitely seems to have a great opportunity.
So without wasting any time let’s deep dive into the analysis of this share.
Table of Contents
RECENT BUSINESS NEWS
Kajaria Ceramics share is the leader in its segment of Ceramic products with a strong outlook and almost no debt.
Real estate sector has the potential to grow in the upcoming future as there was a halt in growth due to the covid pandemic.
USA has almost stopped the imports from China for tiles which is a superb opportunity for Indian tiles industry.
Kajaria Ceramics share is a key player in Vitrified Tiles Market and Ceramic & Porcelain Tiles Market which is likely to attain a great pace in the coming years and this data is published in the latest report of Verified Market Reports.
The company is also a leader in Decorative Tile Industry Market.
Amalgamation scheme has been approved by NCLT amongst Kajaria Tiles Pvt. Ltd. and Kajaria Ceramics Ltd.
Financial Metrics are discussed in the previous analysis. Please do click here for more information.
Today our focus would be more on technical analysis as we see a great opportunity.
TECHNICAL ANALYSIS
Our technical analysis starts with understanding the price action and chart pattern formation in the stock.
CHART PATTERN FORMED
If we take a closer look at the chart in a daily time frame, the Kajaria Ceramics share has formed a rounding bottom pattern.
As per the current share price, the breakout is not achieved yet but Kajaria Ceramics share is marching towards its resistance area.
The share price is moving in upward direction which is evident from its price action as it has been making higher highs.
One can make a long position in this stock as rounding bottom patterns are successful in the long run as the target are also way much higher than other patterns.
Volumes are building into the stock which is a great sign and an indication that operators or big players are very much interested in Kajaria Ceramics share.
A superb target of 25% can be easily achieved if an individual makes a position in this stock.
The Kajaria Ceramics share on 05th January 2022 is ₹ 1325.
After understanding the chart pattern formed, we tend to check the universal and most reliable indicators. Moving average comes first in our list.
MOVING AVERAGE
For Kajaria Ceramics share analysis, we are taking 9 days and 21 days moving averages.
As per the daily timeframe, 9 days moving average has crossed 21 days moving average on 13th December 2021.
After that point the two moving averages are maintaining fair distance among them which is a great signal.
The crossing of moving averages is evident from the chart shown in the above image.
The red line shows the 9 days moving average while the blue indicates the 21 days moving average.
RELATIVE STRENGTH OF THE STOCK
In daily timeframe, relative strength of the stock is positive as compared to Nifty 50.
When the moving averages crossed each other there was also a positive move in relative strength.
This indicator helps to identify the health of the stock and its positiveness makes the conviction stronger.