KPR Mills, Raymond, Arvind: PLI scheme may trigger rally up to 23%

The shares of textile sector have witnessed renewed buying interest by market participants after the Union Cabinet approved the production-linked incentive (PLI) scheme on Wednesday.

The shares of textile companies are witnessing renewed buying interest by market participants after the Union Cabinet approved the production-linked incentive (PLI) scheme on Wednesday. The shares of K.P.R. Mill and Raymond jumped almost 2 per cent today, trading with bullish outlook. Arvind had surged 5 per cent in trades yesterday.

The PLI scheme for textiles is part of the overall announcement of the scheme for 13 sectors made earlier during the Union Budget 2021-22, with an outlay of Rs 1.97 lakh crore. Incentives worth Rs 10,683 crore will be provided over 5 years. READ ABOUT IT HERE

In this backdrop, are textile stocks worth your money? Here's how they look on the technical charts.
 

Arvind Limited (ARVIND)
Likely target: Rs 110 and Rs 115
Upside potential: 12% to 17%

The stock has held the support of 100-day moving average (DMA) since November, 2020 and continues to scale higher levels with “Higher High, Higher Low” formation. The 100-DMA now stands at Rs 86 level.  It sustained above the 200-weekly moving average (WMA) placed at Rs 80 level and shows a positive bias towards Rs 110 and Rs 115.  The immediate closing basis support comes at Rs 96.40, which is also its 50-DMA.  CLICK HERE FOR THE CHART 
 

K.P.R. Mill Limited (KPRMILL)
Likely target: Rs 2,300 (above the all-time high)
Upside potential: 10%
 
Although, the shares of K.P.R. Mill Limited are few bucks away from the all-time high, which is at Rs 2,085 levels, the chart structure shows a firm spurt once the stock breaks above the all-time mark. As long as the support of Rs 1,850 is maintained on the closing basis, the positive bias may help the stock surge to Rs 2,300 level. The volume have remained sideways, yet the stock price has scaled upper levels suggesting the firm strength in the stock.  CLICK HERE FOR THE CHART

 

Welspun India Limited (WELSPUNIND)
Likely target: Rs 145 and Rs 152
Upside potential: 10% to 15%

After posting a new record high of Rs 145.40, the stock has seen profit booking and retested the support of 50-DMA, which it has held since March, 2021. The current momentum indicates a reversal which is likely to record newer highs. The support stays intact at Rs 125, which is its 50-DMA and until this support is defended on the closing basis, the positive sentiment may see a bullish outlook towards Rs 145 and Rs 152.  CLICK HERE FOR THE CHART
 

Bombay Dyeing and Manufacturing Company (BOMDYING)
Likely target: Rs 140
Upside potential:  23%

The Inverse Head and Shoulder pattern shows a breakout mark at Rs 113, according to the monthly chart. Whenever this level gets conquered, the medium-term target would be Rs 140. The Moving Average Convergence Divergence (MACD) is on the verge to cross the zero mark, if that occurs then the positive sentiment may probably see aggressive move on the stock price. The immediate support for the stock is at Rs 90.  CLICK HERE FOR THE CHART

 
Raymond Limited (RAYMOND)
Likely target: Rs 480 and Rs 500
Upside potential: 9% to 13%

The stock has decisively crossed the 50-DMA resistance placed at Rs 426.50, simultaneously giving breakout to the “Inverse head and shoulder”. This up move signals Rs 480 and Rs 500 levels in the upcoming sessions. The stock has held the support of 100-DMA, currently placed at Rs 400. The immediate support is at Rs 420.  CLICK HERE FOR THE CHART