Top Buzzing stock: CCL Products

CCL Products (India) Limited is a company engaged in manufacturing of instant coffee. It has a market capital of Rs 6200 crores and is one of the strongest midcap company of its sector. The company has displayed good fundamental stats as it has generated increasing revenue and net profits in the last four years.

The stock of CCL products has delivered over 86% returns to its shareholders in one year and has outperformed broader market and its peers during the period. In the span of just one month, the stock has reported about 20% increase in its share price. This showcases strong strength of the stock in medium and short term. With such performance across all fronts, the institutions hold over 25% of the company’s stake. The promoters hold a major stake of about 49%, while the rest is being held by the HNIs and public.

The stock is quite bullish and has surged about 5% on the day when overall market sentiment is bad. The stock has taken out its prior swing high of Rs 445 and currently trades above it. This strong price action is accompanied by above average volume. On the weekly chart, the stock is on the verge to breakout from its 26-week cup pattern, which can see the stock to rise to about Rs 600 in medium term.  To support the bullish nature of the stock, the RSI has jumped to 66 indicating strong strength. Along with this, MACD has given a fresh buy signal in the bullish zone. Moreover, the stock trades above all the key short-term and long-term moving averages. All the moving averages are pointing upwards which demonstrates good stock trend for short to medium term.

The technical parameters are in favour of the stock and with strong price action and huge volume, the stock is expected to be trading higher in coming days. Positional traders can consider including this stock in their watchlist to some good gains in short to medium term.