Big Bang breakouts seem to be the order of the day as every other day we see stocks rocketing past previous highs even as the Nifty remains more or less muted.
Today, it was KSB Pumps that broke out of a multi-year resistance with the only barrier remaining being the all time high which is around 30 Rupees away from today’s closing level. Its amazing how some stocks suddenly start moving higher as if some invisible force is lending its hand.
While the stock has seen its share of up and down’s, this month has been a whopper (last time we saw a similar monthly move was in Feb 2012) with the stock having already gained 23.7% as we speak.
The markets are currently pretty bullish and this is aiding the momentum for many of these stocks though I do suspect that even a reversal (other than a major reversal) in Nifty will not push many of the stocks I have been covering back to bearish territory and instead shall find strong supports at the very place they broke out.
For KSB Pumps, the next target is 345 which is the all time high of the stock and if the momentum we are seeing continues, that should not be much of a hurdle to pass.