Kaveri Seeds May Be Poised For A Short-Term Rally: SEBI RA Deepak Pal

Kaveri Seeds is showing short-term bullish momentum, supported by a steady technical setup.

According to the daily chart, Kaveri Seeds’ stock recovered from lower levels on Tuesday, signaling renewed buying interest after holding a crucial support zone around ₹1,150 over the past 10 sessions, said SEBI-registered analyst Deepak Pal.

At the time of writing, the stock was trading 2.3% lower at ₹1,179.00, still comfortably above its key support zone.

Technically, the stock is trading between its 14-day and 200-day exponential moving averages (EMAs), with Tuesday’s close aligning closely with the 14-day EMA, a positive sign for short-term momentum, Pal said.

On the weekly chart, the stock continues to trade above its 55-day EMA and 50-day simple moving average (SMA), indicating that the broader trend remains intact and supportive of further upside.

Given the technical structure, the analyst recommends that short-term traders consider using a buy-on-dips strategy, while capping a stop-loss at around ₹1,150 to manage risk.

If momentum continues to build, the stock has the potential to move towards the ₹1,335 - ₹1,340 range in the near term, a 13.7% premium from the current share price.

Kaveri Seeds is a fundamentally strong company with a debt-free balance sheet, healthy cash reserves, ROCE of 20 - 22%, and ROE above 18%. It has consistently improved margins amid stable revenue growth.

The stock has gained more than a third of its total value year-to-date (YTD).

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