![Chart Check: 50% rally from March lows; This smallcap textile stock could hit fresh 52-week highs in next 3-4 weeks](https://img.etimg.com/thumb/msid-104100893,width-210,height-158,imgsize-24476,resizemode-75/chart-check-50-rally-from-march-lows-this-smallcap-textile-stock-could-hit-fresh-52-week-highs-in-next-3-4-weeks.jpg)
Filatex India, part of the S&P BSE Smallcap index, rose from its 52-week low of Rs 31.60 recorded on 31 March 2023 to Rs 47.32 as on 29 September 2023 which translates into a rally of over 48%.
Short-term traders can look to buy the stock for a possible target of Rs 55-60 in the next 3-4 weeks, suggest experts.
The stock is seen taking support above its multi-year support zone on the daily charts, which suggests a possible bounce back in prices.
The smallcap stock also recorded a Golden Crossover on daily charts on 7 September 2023 where a short-term moving average (50-DMA0 crosses above a long-term moving average (200-DMA).
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA on the daily charts which is a positive sign for the bulls.
![image image](https://img.etimg.com/photo/msid-42031747/et-logo.jpg)
Filatex India which has a market capitalization of more than Rs 2100 cr on the BSE trades at a P/E of 32.75x and an earnings per share (EPS) of Rs 1.44, BSE data showed.
“Filatex India Limited, a small cap company engaged in manufacturing and trading of synthetic yarn and related fabrics falls under ‘Other textile Industry’. The stock has moved by significant volumes in the past few days indicating the investor’s interest,” Madhu Bansal, Research Head, The Finberg, said.
“Though it made its 52-week low in the month of March, it has recovered more than 50% from that price level. The stock is also breaking out from its 24-month support zone,” she said.
“It has recently taken support at multi-year zones giving a volume-driven breakout. It has been trading above 5,20-,50,100- and 200-day EMA levels signifying strong bullishness,” highlights Bansal.
“The stock’s PE ratio is lower along with an increasing market share. All these factors make the stock a good buy with its potential to reach 55-60 levels in the upcoming times,” she recommends.
Note: Madhu Bansal| SEBI Registered Research Analyst| SEBI reg No. INH000010672
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price