Stock to Watch: KBC Global Support at 100-DEMA, Highest Volume in October Since Listing

A Bright Start to Dhanteras

Dhanteras marks the auspicious start of Diwali, a time when investors hope for prosperity. Though Indian benchmarks opened on a quiet note, Bank Nifty showed resilience with a modest rise of 0.17%. In this atmosphere, KBC Global Ltd, a penny stock, has managed to stand out with positive trading momentum.

KBC Global: Strong Technical Support at 100-DEMA

KBC Global Ltd (previously known as Karda Construction Ltd), involved in real estate and construction, recently made headlines by raising approximately Rs 99.50 crore through preferential warrants. Backed by prominent investors like Patanjali Food and Herbal Park and Falcone Peak Fund, this infusion has added fuel to the stock’s recent rally.

The share price has experienced a notable rise, jumping 22% in September, and has gained nearly 5% in October. Even amid market turbulence, KBC Global’s stock maintained high volumes, reaching record levels since listing. Recently, after touching a multi-month high, the stock saw a correction that found a strong base near the 100-day exponential moving average (DEMA). This level served as a critical technical support, confirmed by a robust bullish candle pattern, showcasing the stock’s respect for technical indicators and hinting at sustained buying interest.

Expanding Horizons: International Contracts and Domestic Projects

KBC Global Ltd’s strategic expansion has captured attention. The company recently entered into a Memorandum of Understanding (MoU) with the Liberia Special Economic Zone Authority, aiming to develop residential complexes and commercial spaces at an estimated project cost of $12.5 million. This milestone, expected to start in Q2 2025, reinforces KBC Global’s entry into international markets and aligns with its growth ambitions.

Additionally, in June 2024, its subsidiary, Karda International Infrastructure Ltd, secured a $20 million civil engineering contract from CRJE (East Africa) Ltd, a prominent name in Africa’s infrastructure sector. This agreement with a China Railway Construction Group affiliate bolsters KBC Global’s foothold in Africa.

Back on domestic grounds, KBC Global has begun a new project in Deolali, Nashik. Spanning over 31,998 sq ft, this venture includes a mix of commercial and residential units, further contributing to the company’s development pipeline.

Technical Strength and Positive Outlook

KBC Global Ltd has shown resilience by maintaining positive price momentum while respecting technical levels like the 100-DEMA. The stock’s recent high volume activity underpins investor interest and could signal further upside potential. For investors, this penny stock could represent a unique opportunity, as robust technical support, strategic fund inflows, and significant international projects combine to shape a promising future.

Is this momentum sustainable? With solid technical support and expanding project horizons, KBC Global Ltd might be set for an impressive turnaround.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.