Highlights
- Kitex Garments shares declined nearly 7% amid renewed selling pressure.
- The stock slipped below its 50-day SMA, weakening the near-term setup.
- RSI moved below the neutral zone, reflecting softer momentum conditions.
Overview
Kitex Garments (NSE: KITEX) witnessed notable selling pressure on June 9, with the stock falling 6.77% to ₹152.50. The decline pushed the share price below its 50-day simple moving average and placed the stock among the notable losers of the session.
The weakness comes despite the company reporting profitability in its latest quarterly results. Market participants appeared cautious as the stock failed to sustain recent recovery attempts and moved lower throughout the trading session.
Fundamental View
Kitex Garments reported standalone total income of INR 12,554.12 lakh for the quarter ended March 2026. Profit before tax stood at INR 1,378.13 lakh, while net profit came in at INR 962.20 lakh. Earnings per share were reported at INR 0.48.
The latest results indicate that the company remained profitable during the quarter. Investors may continue monitoring revenue growth, margin trends, export demand, raw material costs, and execution of expansion initiatives for further business visibility.
Technical View
Kitex Garments is currently trading at ₹152.50, down 6.77% for the session. The stock has slipped below its 50-day SMA of ₹162.70, indicating a deterioration in the near-term technical structure. Price action shows that recent recovery attempts faced resistance, with sellers regaining control near higher levels. The RSI has declined to around 36, moving below the neutral 50 mark and reflecting weaker momentum conditions. Unless the stock reclaims its moving average, volatility may remain elevated as traders assess whether the current decline is a temporary pullback or the beginning of a broader corrective phase.
Key Technical Levels
Based on the current market price of ₹152.50, immediate support is placed near ₹144.88, followed by a stronger support zone around ₹137.25. On the upside, resistance is seen near ₹160.13, while the next resistance level is positioned around ₹167.75.
Key Risks to Watch
- Export demand fluctuations may affect revenue visibility.
- Raw material cost volatility could pressure margins.
- Sustained trading below the 50-day SMA.
- Broader market weakness may impact sentiment.
Summary
Kitex Garments came under pressure as selling activity intensified and the stock moved below its 50-day SMA. While the company reported profitable quarterly results, the technical setup has weakened in the near term, with momentum indicators pointing to softer price action. Investors may closely watch whether the stock can stabilize near support zones and regain strength above key moving averages.
FAQs
- Why did Kitex Garments shares fall today?
The stock witnessed selling pressure and slipped below its 50-day SMA, leading to a sharp decline during the session.
- Is Kitex Garments still profitable?
Yes. The company reported a standalone net profit of INR 962.20 lakh for the quarter ended March 2026.
- What should investors monitor next?
Investors may watch support levels, price action around the 50-day SMA, and upcoming business and earnings developments.