Himatsingka Seide, KPR Mill: Trading strategies for textile stocks

Shares of textile companies were in focus at the bourses on Thursday amid media reports that the cabinet note on National Textile Policy is ready to be considered for passage soon. According to a report by CNBC Awaaz, the government aims to invest Rs 10,000 crore in the sector in the next five years.

Among individual stocks, Bombay Dyeing surged 8 per cent to Rs 84.75 on the BSE, Arvind Limited rose 5 per cent, and KPR Mill gained 4.5 per cent. Besides, Aditya Birla Fashion and Nitin Spinners were up 2 per cent, each. In comparison, the benchmark S&P BSE Sensex was trading 0.3 per cent higher, at 11:22 AM.

According to experts, demand from the home textile industry is expected to remain supportive in the near-to-medium term. The home textile industry, they say, witnessed a strong demand revival during July-September quarter (Q2FY21) on high demand from big retailers (selling essentials), who saw their inventory pipeline running dry due to demand recovery, lower channel inventory, and precautionary buying by big retailers during the Covid-19 pandemic. READ MORE

In light of these developments, here's how some textile stocks look on charts

Himatsingka Seide (HIMATSEIDE): The stock has managed to conquer the resistance of Rs 150, decisively. This move may see further upside if the trend continues to attract follow-up buying. Another positive close may see a rally in the direction of Rs 185 to Rs 200 levels. The support comes at Rs 145 levels. The Moving Average Convergence Divergence (MACD) was resilient to breach the zero line during the recent correction; this reversal nearing the zero line suggests the underneath trend is likely to stay bullish.. CLICK HERE FOR THE CHART
 
Nitin Spinners Limited (NITINSPIN): The stock price is nearing the 200-weekly moving average (WMA) placed at Rs 76.55 levels. This means the next breakout may happen after a firm close above the resistance. The overall trend looks promising as the counter is not showing any major weakness at the current momentum. The Relative Strength Index (RSI) has entered the overbought condition, suggesting that profit booking may emerge in near future. CLICK HERE FOR THE CHART
 
Gokaldas Exports Limited (GOKEX): Until the stock holds Rs 85 levels on the closing basis, it may see a rally in the direction of Rs 110 and Rs 122 levels. The weekly chart shows a breakout above the 200-WMA, firmly supported by strong volumes, ascertaining the upside bias. The overall trend is supported by 50-day moving average (DMA), indicating that the trend may remain positive with mild corrective moves witnessing buying momentum. CLICK HERE FOR THE CHART
               
K.P.R. Mill Limited (KPRMILL): With a "Higher High, Higher Low" formation on the daily charts, KPR Mills is showing an anticipated upside. From a pattern view, till the counter holds Rs 823 levels, which was the last reversal low, the upside bias may see a rally towards Rs 1,000 and Rs 1,050 levels. On a short-term basis, Rs 900 stays as a closing basis support. CLICK HERE FOR THE CHART
 
Aditya Birla Fashion and Retail Limited (ABFRL): This stock needs to strongly cross the resistance of Rs 170 levels on the closing basis. Upon achieving the milestone, the rally may move towards Rs 200 levels. On the downside, the level of Rs 155 seems fairly supportive. The RSI is trading sideways, suggesting a consolidating trend. CLICK HERE FOR THE CHART
 
Arvind Limited (ARVIND): This stock is the perfect example of conquering significant resistances with gradual volume increase. Earlier, the consolidation breakout above the resistance of Rs 38 levels had pushed the stock to higher levels as per the weekly chart. Now, after crossing the current resistance of Rs 45, the stock is aiming Rs 60 as the immediate level. The overall trend is bullish till the counter holds the support of Rs 40 levels.  CLICK HERE FOR THE CHART