In a display of remarkable resilience, shares of KPI Green Energy powered ahead on Tuesday, December 30, completely disregarding the subdued sentiment in the broader equity market. The small-cap power stock witnessed a sharp intraday surge, capturing the attention of investors and analysts alike.
A Defiant Rally Against Market Trends
The stock opened virtually flat at ₹404.05 on the BSE, compared to its previous close of ₹404. However, it soon gathered strong momentum, climbing as much as 14.4% to hit an intraday high of ₹462. By around 11:20 AM, the scrip was trading firmly, up 13.69% at ₹459.30. This robust performance was set to end its two-day declining streak. The rally stood in stark contrast to the benchmark indices, with the Sensex trading 57 points lower at 84,639 at that same time.
This surge brings a flicker of optimism for a stock that has faced pressure in 2024. BSE data indicates that the KPI Green share price had declined about 17% year-to-date, even as the Sensex managed an 8% gain. However, on a monthly basis for December, the stock is now up 6%, marking a recovery from a steep 19% loss in November.
The long-term picture for shareholders remains exceptionally bright. Over a three-year period, the stock has delivered multibagger returns of 370%. Stretching the horizon to five years reveals an astronomical gain of 6,903%, underscoring its historic growth trajectory.
Technical Charts Signal a Bullish Reversal
Market experts attribute this sharp move to a significant technical breakout. Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, noted that after a prolonged phase of consolidation between ₹405 and ₹430, KPI Green shares have now confirmed a decisive breakout.
"The price has moved decisively above this congestion zone and is currently trading near the 455 level, which strengthens the bullish outlook," Patel stated. He emphasized that the breakout is backed by a noticeable surge in trading volumes, indicating strong conviction from market participants.
"Such volume-backed moves often signal the beginning of a sustainable uptrend rather than a false breakout. In this context, a buy-on-dips strategy appears favourable," Patel advised. He suggested that any pullback towards the ₹440 zone could be an accumulation opportunity. For the upside, he sees potential for the stock to advance towards the ₹500 level, with a strict stop loss placed at ₹400 on a daily closing basis.
Momentum Indicators Support Further Upside
Echoing the positive sentiment, Kunal V Parar, Vice President of Technical Research and Algo at Choice Broking, also anticipates a healthy upward move. Parar highlighted that the stock has confirmed a bullish breakout on the daily chart by moving above the upper band of its falling wedge pattern, a classic sign of positive reversal.
He added that the stock sustaining above its 21-day moving average suggests the overall trend is positive. Furthermore, the breakout from its earlier range-bound consolidation signals strong momentum. "The daily momentum indicator RSI is trading above the 50 mark, reflecting improving strength," Parar observed.
Based on this technical structure, Parar expects the stock to rally towards ₹500–570. He recommends investors maintain a strict stop loss at ₹401 to manage risk effectively.
Disclaimer: This article is for educational purposes only. The views and recommendations are those of individual analysts and not of the publication. Investors are strongly advised to consult certified experts before making any investment decisions, as market conditions are dynamic and individual circumstances vary.
