Laxmi Organic shares: Mid-cap stock sees technical breakout, jumps over 6%; Anand Rathi expects 20% more upside | Stock Market News

Laxmi Organic Industries share price jumped over 6% on Tuesday, extending its rally for the third consecutive session amid heavy volumes. Laxmi Organic shares rallied as much as 6.26% to a high of ₹308.55 apiece on the BSE.

Around 43 lakh equity shares of Laxmi Organic Industries traded hands on stock exchanges today as against its one week average volume of 18 lakh shares.

Laxmi Organic share price has gained over 7% in one month and more than 15% in three months. However, the mid-cap stock has remained rangedbound in one year as has gained just 5% during the period.

Technicals

Brokerage firm Anand Rathi noted that Laxmi Organic shares broke above a bearish trendline and it expects the stock to see a decent upmove.

“Over the past year, Laxmi Organic Industries stock has established a robust support level within the range of ₹235 – 245, undergoing multiple tests that have demonstrated its resilience in the face of downward pressure. Recently, there has been a significant development as Laxmi Organic Industries shares broke above a bearish trendline that had constrained its movement for the past 3 – 4 years, and notably, it has sustained this breakout. This suggests a fundamental shift in market sentiment towards Laxmi Organic Industries stock,” Anand Rathi said in a report.

Furthermore, on the indicator front, the weekly Relative Strength Index (RSI) has surpassed its own multi-year bearish trendline, signaling bullish momentum in the short to medium term.

Considering these technical indicators, Anand Rathi has advised traders and investors to initiate long positions in Laxmi Organic Industries shares within the range of ₹290 – 305 and for a timeframe of 3 months. It has set a target price of ₹355 per share on the stock, implying an upside potential of around 20%.

To manage risk, analysts at the brokerage firm recommend placing a stop-loss order near ₹267 on a daily closing basis.

Laxmi Organic Industries share price hit a 52-week high of ₹325.50 apiece on September 11, 2024, while the stock hit a 52-week low of ₹220.00 apiece on June 04, 2024, on BSE. 

At 2:30 pm, Laxmi Organic shares were trading 3.69% higher at ₹301.05 apiece, commanding a market capitalization of nearly ₹8,326 crore on the BSE.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.