JK Paper soars 4%; what does it offer traders?

JK Paper has jumped over 4% amid strong buying interest during Thursday’s trading session.

The Indian indices soared on Thursday amid positive global cues, and strong buying sentiment is seen across quality midcap and smallcap stocks. Meanwhile, the stock of JK Paper (NSE Code: JKPAPER) has seen fresh buying interest as it registered a price volume breakout from its consolidating pattern on Thursday.

It has surged over 4% and is now above all its key moving indicators. The volume has risen for the third consecutive day, which shows a rising participation level in the stock. Also, the stock has seen a strong jump of over 15% from its prior swing low and now is above the 50% Fibonacci retracement of its prior downtrend.

From a technical perspective, the stock has become bullish. The 14-period daily RSI (56.49) is above its prior swing high and shows strong strength. Both the price and RSI moving above their respective swing highs is a positive sign. In addition, the MACD has indicated a bullish crossover. The OBV remains elevated and shows good strength from a volume perspective.

The +DMI is well above the -DMI and Elder Impulse system, which has indicated a fresh buy. The KST and TSI indicators also indicate bullishness. The Relative Strength (RS) is above zero and shows outperformance against the broader market. In a nutshell, the stock is expected to trade higher in times to come.

In its recent quarterly results, the company posted stellar earnings as revenue jumped 116% YoY in June 2022, while net profit grew 151% YoY to Rs 104 crore. On a YTD basis, the stock has nearly doubled investors’ wealth and appears strong over a longer timeframe. For traders, it shows strong trading opportunities with a favourable risk-reward ratio. Investors can consider adding this fundamentally-sound stock to their portfolio kitty after analyzing the stock.

Currently, the JKPAPER share price is trading at Rs 403 level on NSE. One can include it in their watchlist to track its further development.