Triangle Breakout: Penny Stock With FIIs’ Interest Jumps 10%

  • Stock Market Analysis
Aayush Khanna - Investing.com

Traders interested in the penny stock space should keep a tab on Diligent Media Corporation Ltd (NS: DILG ). The company is engaged in the business of printing, publishing and distributing newspapers, magazines, books, etc., and has a market capitalization of a mere INR 35 crore.

Despite being so small, it is a profitable organization and reported a net profit of INR 23.95 crore in FY22 and INR 160.69 crore in FY23. The recent profit figure is 359% higher than the total market cap of the company.

Image Description: Daily chart of Diligent Media Corporation with volume bars at the bottom

Image Source: Investing.com

But here’s the surprising part, even FIIs hold a stake of 4.52% in the company which is almost unbelievable as these astute investors generally do not go this low in terms of market cap while investing.

On the technical front, the stock jumped 9.8% to INR 3.35 on Friday and surged past the resistance of a symmetrical triangle pattern on the daily time frame. This is a volatility contraction pattern and a breakout from it indicates a trend beginning in that direction.

Volumes have always been an issue with such small companies and so is the case with Diligent Media Corporation shares. However, we witnessed some pickup in volume on Friday with a total figure of 323.5K shares which was 208% higher than the 10-day average volume of 104.8K shares.

To estimate the target of the rally, the height of the triangle is calculated which is then added to the breakout level. In this case, it is coming out to be around INR 4.2, which is a good 25% upside from the CMP. A stop loss can be maintained below the lower trendline support of the triangle to cut the losses in case the stock takes a U-turn.

In case you want to connect with me, reach out on X (formerly, Twitter). My handle is - aayushxkhanna

Read More: How to Check the Quality of Your Stock: Intrinsic Value

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  • Veeresh Capt @Veeresh Capt
    Wow great spotting ! Damn its now only UC missed
    Like 1
  • @
    Aayush sir, i m leaning a lot from your articles...thanks for sharing such a awesome analysis every time.
    Like 2
    • Rajinder Choudhuri @Rajinder Choudhuri
      Read other people who commented on this article
      Like 0
    • Aayush Khanna @Aayush Khanna
      Thanks, Ravi.
      Like 0

      • Comment Guidelines

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  • kca chand @kca chand
    only for those who say share market is gambling only
    Like 1
  • Parivesh Pandey @Parivesh Pandey
    If its not under F&O, stay away, even when buffet is buying
    Like 8
    • Arjun Rawat @Arjun Rawat
      100% correct
      Like 1
    • Arjun Rawat @Arjun Rawat
      Contingent liabilities of Rs.2,210 Cr.Earnings include an other income of Rs.161 Cr., Company has high debtors of 372 days
      Like 2
    • Sudipto Roy @Sudipto Roy
      I would also add - analysts who analyse such stocks should also be avoided like plague. Ayush writes well but often pushes such junk to unsuspecting investors. Lure of the filthy lucre, as they say.
      Like 0

      • Comment Guidelines

      We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

      • Enrich the conversation
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