Chart Check: This smallcap stock rose 100% from June lows; should you buy or book profits?

Jai Corp, part of the S&P BSE Smallcap index, doubled investors' wealth from its 52-week low recorded in June 2022, but technical indicators suggest that the momentum is still intact and could take the stock towards Rs 300 level, suggest experts.

Traders who missed the rally seen in the last three months can look at buying the stock now or on dips for a possible target towards Rs 225-375 in the next 6 months, suggest experts.

It also gave a breakout from a symmetrical triangle formation on the monthly charts which is a bullish sign.

Symmetrical triangle is commonly considered a continuation pattern, but there are instances when it acts as a reversal pattern. A downward breakout after an uptrend should be considered a reversal pattern. Also Read

The stock saw a vertical rise after hitting a 52-week low of Rs 95.80 on 20 June 2022. The stock closed and made a 52-week high of Rs 195.45 on 19 June which translates into an upside of over 103 per cent.

Jai Corp has traditionally been into manufacturing businesses like steel, plastic processing, and spinning yarn. It is now focusing and investing in emerging opportunities like developing SEZs, infrastructure, venture capital, and real estate, said the company website.

The stock has been on buyers’ radar so far in 2022. It rose more than 21 per cent in a week, and more than 45 per cent in a month.

However, it is trading near overbought levels; hence some pullback cannot be ruled out. Short-to-medium term investors can look to buy the stock on dips towards Rs 165-120, suggest experts.


The Relative Strength Index (RSI) is placed at 72.6. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. MACD is above its center and signal Line, this is a bullish indicator.

“Jai Corp stock price started its up move from 1.45(April 2003) to 1450 (January 2008), making a series of higher tops & higher bottoms, supported by volumes. During the move the stock continuously traded above averages,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“There is profit booking followed, the stock traded below averages and made a low of Rs 35.5 in August 2013. In between stock rallied a bit but was unable to crossover Rs 300-350 Price zone area,” he said.

“Recently, the stock has given symmetrical triangle breakouts in monthly charts. Monthly price bar is formed above the line connecting January 2008 and August 2022. Recently the stock made a high above Rs 190 above previous swing high of Rs 173,” added Gala.

The William % R, CCI and ADX Indicators indicate buying strength in the stock. The behaviour of the price suggests a possible further upmove.

“The possible targets are Rs 225-375 -575. If the stock price corrects downwards the buy levels are Rs 165-152-141-130-124. A stop loss to be observed in the trade is Rs 114,” recommends Gala.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)