Kirloskar Pneumatic (KPCL) has broken out of a key resistance zone around ₹1,420 and is poised for further upward momentum.
At the time of writing, the Kirloskar Pneumatic stock was trading at ₹1,448.30.
The trendline support remains intact, and the stock continues to form a higher high–higher low pattern, which typically indicates a bullish trend, according to Rajneesh Sharma, a SEBI-registered analyst.
In an earlier post last month, Sharma had identified KPCL as a hidden gem when the stock was trading around ₹1,324. Robust fundamentals back the stock, and the analyst saw strong indicators for a breakout above the ₹1,420 level.
The breakout activates a swing setup with an entry above ₹1,420 and potential targets in the ₹1,600 - ₹1,750 range, a 23% upside considering the upper end of the target price, the analyst said, with a key support zone lying between ₹1,300 and ₹1,240.
However, if the stock closes below ₹1,240 on a weekly basis, the bullish trend structure may begin to weaken.
Strong fundamentals support KPCL, as it has a debt-free balance sheet and is steadily increasing its exports.
Year-to-date, the stock has fallen around 6%.
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