Trident shares rise over 19%, rally 29% in seven days; here’s why

Trident share price rose 19.39% on Monday, surged to 49.05 per share, against previous close at 40.90 on Friday last week. The stock gained over 29% in the last seven trading sessions. The surge in market enthusiasm ensued following the company's announcement to the stock exchanges regarding the expansion of its current yarn business capacity at the Budhni unit in Madhya Pradesh.

This disclosure was made on December 29. Also read: The company augmented its capacity by 189,696 spindles, incurring an investment cost of 830 crore, financed through a combination of term loans and internal accruals, as stated in the filing. The company's updated capacity now stands at 589,248 spindles, 7464 rotors, and 160 Air Jets, with a utilization rate of 82%, according to the company filing.

The price movement was accompanied by robust trading activity, with over 18.16 crore shares being exchanged on the NSE around 10:50 am. On the , the volume witnessed a surge of 6.91 times. At this juncture, the traded value of the shares amounted to 812.04 crore. The stock's 52 week low, recorded on March 27, 2023, is 25.05.

Also read: Originating from Punjab, the company has expanded its reach to encompass customers spanning 100 countries. Trident, with an annual revenue exceeding 6,200 crore, offers a diverse array of products across categories such as home textiles, stationery, paper, yarn, and chemicals. Following today's price movement, the stock has entered the overbought territory.

As per data disclosed by Trendlyne, the day's Money Flow Index (MFI) and Relative Strength Index (RSI) are approximately 76 and 82, respectively. Also read: Trident shares have yielded impressive returns of nearly 40% in the past year, which is twice the returns offered by the Nifty 50 during the same period.

Currently, the stock is trading above both its 50 day and 200 day Simple Moving Averages (SMAs), indicating stability. According to Trendlyne data, its 1 year beta is recorded at 0.6. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.