Vardhman Textiles Limited is an integrated textile manufacturer. The company is engaged in the manufacturing of cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fibre, tow, and garments. The company’s segments include textiles and fibre. The company is a piece dyed fabric manufacturer, and cotton yarn manufacturer and exporter. It offers the range of specialized greige and dyed yarns in cotton, polyester, acrylic and a range of blends. The company also manufactures products, such as organic cotton, melange, core spun yarns, ultra yarns (contamination controlled), gassed mercerised, super fine yarns, slub and cellulose yarns and fancy yarns for hand knitting.
| Company | VARDHMAN TEXTILE |
| Recommendation | Buy Rs. 353.90 |
| SL | Rs. 322.90 |
| Target Price | Rs. 397 |
| CMP | Rs. 353.90 |
| Time Horizon | 2-3 Weeks |
The stock was in an uptrend from April 21 till Jan 22, after the stock made its all-time high of 576. Then, it started correcting till 245 and 245 acted as strong support for the stock, where the price made a rounding bottom pattern which approached the near resistance around 356. Also, the stock price is above all key exponential moving averages. Currently, the stock price is just on verge of giving a breakout. These all are the healthy sign of the stock before any big rally. Overall, the chart pattern looks promising after analysing key oscillators & indicators with price, it’s a good opportunity for going long along with the stock. So one should initiate accumulation at the current price level, which is 353.90 till 340 with the stop loss of 322.90 for the target of 397.
Source: Capitaline Database, EWL Research, Reuters
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