Kiri Industries shares soar 20% to hit upper circuit; key technical levels to watch

Shares of Kiri Industries Ltd rose sharply in Tuesday's trade to hit their upper price band. The stock rallied 20 per cent to scale a day high of Rs 406.70. At this price, it has gained 59.18 per cent from its 52-week low of Rs 255.50, a level seen earlier on February 3 this year. Despite the mentioned rise, it scrip was down 20.34 per cent from its one-year high price of Rs 510.55, hit on Decemebr 12 last year.

On techncial setup, support on the counter could be seen at Rs 385, followed by Rs 370 and Rs 365 levels. On the higher side, resistance may be seen around the Rs 430 zone. An analyst suggested booking profits at current levels.

"Support will be at Rs 365 and resistance at Rs 430. Expected trading range will be between Rs 300 and Rs 500 for a month," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"Kiri Industries is overbought and bullish on daily charts with next resistance at Rs 424. Investors should book profits at current levels as a daily close below support of Rs 370 could lead to a target of Rs 320 in the near term," said AR Ramachandran from Tips2trades.

"The stock may hit Rs 430 in the near term. Keep stop loss placed at Rs 385," sad DRS Finvest founder Ravi Singh.

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 85.28. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 17.95 against a price-to-book (P/B) value of 3.85.

Kiri Industries is one of the largest manufacturers and exporters of a wide range of dyes, intermediates and chemicals from India.

As of September 2023, promoters held 26.72 per cent stake in the company. On BSE, around 1.88 lakh shares changed hands today. The figure was higher than the two-week average volume of 22,000 shares.

Turnover on the counter came at Rs 7.33 crore, commanding a market capitalisation (m-cap) of Rs 2,073.63 crore. There were 8,048 buy orders against sell orders of 2,108 shares.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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