Trend in Paper Stocks – JKPAPER, TNPL, WSTCSTPAPR

Paper stocks were is a bearish mode for past many months due to overall weakness in smallcap stocks and many of them tanked more than 50% in last 52 weeks period.

But now a new trend is coming to paper stocks mainly news about possible countrywide plastic ban and also most of the paper stocks reported better than expected sales and pat numbers.

On daily chart many of the paper stocks already crossed RSI 60 like Balkrishna, astron, nrail, repro, pdmjepaper, ruchira, genuspaper, jkpaper, maluspaper, navnetedul, ramanews, shreyanind, starpaper, tnpl and wstcstpapr. Dbcorp, dicind, orientltd, archies and hmvl are just crossed 50 rsi level.

A quick big rally is difficult because most of them are still under their 200dma and 200ema levels but further upside possible in the coming weeks if nifty and sensex hold on to its current levels.