KPI Green Energy shares hit 10% upper circuit limit; what's next on technical charts?

Shares of KPI Green Energy Ltd rose sharply in Monday's trade, pausing their three-day losing run. The stock surged 10 per cent to hit its upper price band of Rs 1,261.45. At this price, the scrip was just 0.28 per cent away from a 52-week high level of Rs 1,264.95, a level seen on November 28 this year. The counter has turned into a multibagger by rallying 233.29 per cent from its one-year low of Rs 378.48, hit on December 26 last year.

The company has recently received a new order for executing solar power projects. "We are glad to inform that new orders of 1.75 MW for executing solar power projects received by KPIG Energia Pvt Ltd, a wholly-owned subsidiary of the company under 'Captive Power Producer (CPP)' Segment of the company. We are glad to inform you that, with addition of the order mentioned, our cumulative orders of solar power projects, till date have crossed 149+ MW under CPP segment of the company," KPI Green stated in an exchange filing.

On the technical front, the counter traded 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 71.70. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 56.53 against a price-to-book (P/B) value of 15.67.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The stock has support around Rs 1,155 and resistance near Rs 1,350."

DRS Finvest founder Ravi Singh said the stock may see Rs 1,350 level in the near term. Keep stop loss placed at Rs 1,220, Singh mentioned.

AR Ramachandran from Tips2trades said, "KPI Green is bullish but also overbought on daily charts with next resistance at Rs 1,405. Investors should book profits at current levels as a daily close below support of Rs 1123 could lead to target of Rs 950 in the near term."

(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.)

Also Read | YES Bank shares jump 4% today; key technical levels to watch out for

Also Read | Coffee Day shares surge 18% today; can they revisit one-year high level?