Paper Stocks Are on Fire

Hello, everyone. Welcome to the Fast Profits Daily. Myself, Brijesh Bhatia.

As a kid, every one of us have played with this paper aeroplane. When we compete with each other, the kid who throws the aeroplane the farthest wins the competition.

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Well as we have grown up as an adult, this paper aeroplane have turned into the real paper money, and we are every day running after money, to multiply our money or to earn something.

As an investor in the stock markets, the reason why I'm highlighting this paper aeroplane, is to focus on the paper stocks, which are trending higher and higher.

Well, if you know some of the paper stocks like JK Paper, West Coast Paper, they are hitting all time high or probably 52 week highs if you look at the recent momentum and they are coming up very, very strongly. Most of the paper stocks are breaking out of their consolidation zone.

Even if you look it at as an adult, our kids we're into the computer age or the online schooling for our kids, but as soon as the schools are reopening, and most of the states have lifted or made the compulsion of offline schooling, the demand for school books will increase dramatically.

Well, even if I look at those people who are reading books, many of them, like me, still prefer reading the physical book rather than on Kindle.

So I think paper demand won't decrease. But again, generally, paper demand comes from the books. And during the online schooling, pdf was one of the most important part of the book. Now with children coming back to the offline schools, the books will be very, necessary. So that that is the reason most of the paper stocks are coming back very, very strongly.

So just to highlight on your screen, as I said, JK Paper is trading somewhere around 288 levels. The 52-week high was around 298. West Coast is trading around 295-300 levels. 52-week high is around 304.9. Seshasayee Paper 175, the 52-week high is 228. TNPL, trading around 158. The 52-week high is around 182.9. Andhra Paper trading around 258, and there are a few stocks they are a few percent away from their 52-week highs.

So the thing to highlight is that these paper stocks are coming back very, very strongly. As the market has been correcting, these stocks are coming back very, very strongly and it's definitely a sector to watch out.

Let's focus on some of the stock charts, which are very, very promising for me. Let's look at the first chart which is JK Paper.

JK Paper Ltd

 

Now, if you look at the chart over here, this is the weekly scale chart. The blue line is the Bollinger Band. After a long, long time, since 2021 I would say, the October 2021 the stock was slow and steady falling down.

If you look at the Bollinger Band, the upper band and lower band, they were squeezing slow and steady. After this long period of time, the Bollinger Band is widening or the expansion has started.

Plus, if I just look at the bullish cross on the MACD on the lower panel over here, it is giving me confidence that stock is about to break the higher levels.

Now in technicals, we term it as history repeating itself. So look at the similar pattern which happened in October 2020 where it consolidated. The Bollinger Band squeezed and then it started expanding. Plus the bullish crossover on MACD was in again in highlights. So I think history is repeating in JK Paper.

West Coast Paper Mills Ltd

 

West Coast, the second chart, West Coast Paper Mills ltd, it has been breaking out of the long consolidation period of 56 weeks over here. Plus, if you look at the Bollinger Band, the expansion is happening.

So again just to give a highlight, Bollinger Band, if you look at this orange line, it's basically the 20 days average and two standard deviations up, plus two and minus two standard deviations, is calculated onto the Bollinger Band, and when the volatility increases these Bollinger Bands start expanding. When the volatility decreases these Bollinger Bands starts squeezing.

So now the expansion, which means that the volatility is increasing and the prices are heading higher. to the upper band with the expansion, which means that the prices are about to trend higher. Plus, if you look at the lower MACD, a bullish cross over on MACD as well on the West Coast Paper.

Ruchira Papers Ltd

 

Third is Ruchira Papers. Now, if you look at the resistance of somewhere around on 73-74 is now turning out to be the support zone. If you look at the green trend line which has broken, the three years falling trend line, in the last year and then prices consolidated.

So I think with Bollinger Band expanding again on this chart, with the resistance turning support, it indicates that the stock might trend higher.

These are not just 3 stocks. Most of the stocks in the paper segment are giving a Bollinger Band expansion, which means the sector is a on the verge of giving a huge break out or the bullish momentum court trigger.

As an investor, one should keep in mind that most of the stocks in the paper segment or the sector are smallcap or microcap. So you need to keep a watch. Some of the stocks don't even have the daily average volumes which you want to buy. So keep in mind that there is a risk involved in the volume side as well.

Keep in mind that we are just highlighting the segment, which is the sector, which is breaking out from a consolidation zone or stocks are trading at 52 week high and this is not our recommendations we are pitching this video, but one should definitely look at this sector as an investment and consult your investment adviser before investing into the stocks. It's definitely a sector one should watch for an investment.

Signing off, Brijesh Bhatia.