Moving against the tide: Trident

Interestingly, the stock is seen going against the tide on Monday, where it has outperformed the market hands down.

Trident Limited is a terry towel, yarn, and wheat straw-based paper manufacturer. It is a midcap company with a market cap of Rs 24,180. The company has witnessed an increase in its market share from 2.89% to 3.95% over the last 5 years. It has also reported higher than industry revenue growth over the same period. Certainly, the company means business and it is also evident from its stock price.

Its YTD performance stands at a whopping 379.29% while its three-month performance, alone, contributed 134.9%. As these figures tell us, the stock is extremely bullish in the medium to long term. Interestingly, the stock is seen going against the tide on Monday, where it has outperformed hands down. The promoters hold a significant stake in their company for about 73%. The FIIs hold just about 2% while the rest of the part is held by the retail segment. Recently, the company reported good results on a quarterly basis with double-digit growth. Strong positive commentary from the management boosted the investor’s confidence in the company.

Currently, the stock is trading at its fresh all-time high of Rs. 47.45. For a few days, the stock has been scaling newer to fresh highs. The stock has been witnessing above average volumes, and the volumes on Thursday (November 18) were the highest single-day volume recorded since October 14, which indicates increasing participation from the market participants. The stock trades well above its key moving averages showing extreme bullishness. The RSI, too, lies at 77 displaying strong strength. The +DMI has just crossed its -DMI indicating more room for the upside. Market participants are showing interest in this stock, as is evident from the above points.

Considering the performance Trident has shown, one can expect the stock to continue its momentum on the higher side. Traders can expect some good returns for the short to medium term as the technical analysis validate our point.