Technical Pick: Buy Kajaria Ceramics For Good Short Term Gains

In the latest report of Prabhudas Lilladher, a leading brokerage firm has recommended buying Kajaria Ceramics for short-term gains with a risk-reward ratio.

According to technical analysis, the stock has been trending in an uptrend for the past few weeks, and it looks strong technically for short-term gains. It has the potential to reach the target of Rs. 1300, according to the report of the brokerage firm.

Here is the breakdown of the latest report of Prabhudas Lilladher on Kajaria Ceramics.

Outlook of Kajaria Ceramics

Kajaria Ceramics is the largest manufacturer of ceramics/vitrified tiles in India. The company manufactures, trades, and outsources vitrified and ceramic tiles, and it has diversified business interests and operates in Sanitaryware and Plywood businesses as well.

The stock's current market price is Rs.1178, with a market capitalization of Rs. 18,765 Crore. The stock's all-time high is Rs. 1,379, and the all-time low is Rs. 885.

Buy Call of Prabhudas Lilladher

According to the latest report of Prabhudas Lilladher, "The stock after a short correction has maintained a good support near the significant 200DMA as well as 50EMA moving averages of 1105 levels and has indicated a "Golden Cross" pattern on the daily chart to anticipate for a further upward movement in the coming days.

The RSI also has shown a significant pullback to improve the trend and has immense upside potential. With the chart looking good, we suggest buying and accumulating the stock for an upside target of 1300, keeping the stop loss of 1100."

Technical Analysis of Kajaria Ceramics

As per the technical analysis, the chart of Kajaria Ceramics looks good; the stock is in good momentum to the upside over the past few weeks. Here are some of the bullish technical indicators on daily time frame -

• The price of the stock has made a bullish Flag and pole pattern.
• The RSI has just crossed 60 and moving to the upside.
• The price is above the 200-day moving average, and it will turn upside after taking support on the moving average.