Shares of vinyl flooring maker Responsive Industries Ltd have surged nearly 72% in three sessions on the back of higher volumes.
The scrip advanced as much as 18% intraday to hit a high of Rs 177.70 on BSE. However, the performance this year is not impressive as the stock is down nearly 4%.
“After a medium-term price correction, the stock formed higher bottom formation near Rs 100. Following formation, the stock reversed sharply and successfully cleared the short-term resistance of Rs 125. After a long time, Responsive is trading above its 200-day simple moving average (SMA) which is broadly positive,” said Shrikant Chouhan of Kotak Securities.
Yesterday the stock rallied 20 percent. “For the positional traders, now the 200-day SMA or Rs 135 could be the key level to watch out. If the stock manages to trade above that then we can expect an uptrend continuation wave up to Rs 160-170. But if the stock closes below Rs 135 it may trigger further weakness up to Rs 114-110 support level,” he added.
Yesterday, the firm also reported its September quarter earnings: Consolidated net profit stood at Rs 6.42 crore against a loss of Rs 2.70 crore a quarter ago. Revenue was Rs 292.92 crore, up 66% from last quarter.
On Monday, Responsive told exchanges its board had approved a revised scheme of amalgamation of Axiom Cordages with itself.
“Upon amalgamation, shares held by the company in Axiom and vice versa shall stand cancelled, and the share capital of the company shall be reduced to that extent,” the firm said.
Responsive added it will allot 100 shares for every 81 shares held by others in Axiom.
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