Arvind, Raymond: Textile stocks with land bank may rise up to 16%

Selective textile stocks are developing robust chart structures

Shares of textile stocks possessing land bank were seen trading with resilient sentiment lately. Shares of Raymond hits a new historic peak on Monday, and Century Textile and Industries reached a new 52-week high in the previous session.

Last week, Arvind reached a new 52-week high, while Bombay Dyeing and Manufacturing Company surpassed 12-month high. 

Here's the technical outlook of selctive stocks:-

Raymond Ltd (RAYMOND)

Likely target: Rs 2,100

Upside potential: 16%

Shares of Raymond have broken out over Rs 1,800, which is currently acting as a barrier, as per the daily chart. When the stock succeeds to leap over this hurdle on closing basis, the up move shall direct the trend towards Rs 2,100 level.

The support for the upward bias exists at Rs 1,650, where the stock has seen accumulation in the recent past. While there are divergences of the Relative Strength Index (RSI) on the price action, the trend has not abandoned the bullish stance. CLICK HERE FOR THE CHART

Century Textile and Industries Ltd (CENTURYTEX)

Likely target: Rs 1,050

Upside potential: 15%

A “Golden Cross” breakout has triggered a positive upside from a medium-term perspective. The current momentum is headed in the direction of Rs 1,050-mark. Immediate closing basis support falls at Rs 880-level.

Until the stock protects the key support of Rs 800, the broader trend appears lucrative, as per the daily chart. Stock is experiencing optimistic sentiment in the overbought category of RSI, deserting any sell-off. CLICK HERE FOR THE CHART

Arvind Limited (ARVIND) 

Likely target: Rs 160

Upside potential: 15%

Shares of Arvind are strongly moving higher, with “Higher High, Higher Low”, formation suggesting further upside until critical supports are defended. 

The immediate support of 50-day moving average (DMA) remains a key neckline for a down move. Weekly chart denotes that unless the support of Rs 115 is breached, the trend is expected to see higher levels in the medium-term. The present strength implies a rally to Rs 160-mark. CLICK HERE FOR THE CHART

Bombay Dyeing and Manufacturing Company (BOMDYING)

Likely target: Rs 130

Upside potential:  14%

A move over the 100-weekly moving average (WMA) placed at Rs 93.50 has sparked a bullish momentum in the stock. Furthermore, a rally that overcame the following hurdle of Rs 98 has further pushed price action into bullish territory. 

A closing basis support of Rs 105 could see the stock heading in the direction of Rs 130, as per the daily chart. The price action is not letting selling pressure to dominate in the overbought category, signalling a positive underlying momentum.  CLICK HERE FOR THE CHART