Paper manufacturing company, JK Paper is set to make significant gains in the coming months on stock exchanges. Markets are already recovering since last week from their steep corrections caused due to intensive escalation of Russia's Ukraine invasion. Since the start of this week, JK Paper has witnessed favor of bulls as the stock is nearing its record level on exchanges.

The JK Paper stock has been on a rising mode since November 2020 when the stock was near Rs86 apiece and rose to around a new high of Rs285 apiece in August 2021. The upward tick still lingers on the stock and has the potential to reach up to the Rs465 apiece mark.

On Monday, Sensex and Nifty 50 continued to gain traction as investors' strategy moves to tactical buying. While easing in commodities price further adds to the fruitful rally on Indian exchanges. BSE Sensex settled near 56,500, while Nifty 50 ended a little over 16,870.

On market performance, Vinod Nair, Head of Research at Geojit Financial Services said, "We are gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting. FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the domestic market. Globally, investors are bracing for rate hikes as expected. Domestic WPI has spiked up however the market is ignoring as future prices can get gloomy."

Tracking the bullish tone of broader markets, JK Paper on BSE closed at Rs277.05 apiece on Monday up by Rs8.75 or 3.26%. The stock climbed to an intraday high of Rs279.75 apiece which is already nearing the 52-week high of Rs284.80 apiece.

In technical stock recommendations, Bharat Gala, President - Technical Research, Ventura Securities sets a possible target of Rs465 apiece on JK Paper going forward.

Comparing the Ventura target with the previous day's closing price, JK Paper stock has the potential of growing by more than 73% going ahead.

Gala highlighted that JK Paper stock price started its up move from 86.5 (Nov 20) to 285 (Aug 21), making a series of higher bottoms. However, a technical correction in the form of profit booking followed and the stock made a low of 192 on Dec 21.

"From Sept 21 to March 22 the stock traded in a range of 190 to 250 Price Zone," Gala added, "Recently the stock gave Range breakouts & made a high of 275 accompanied by supportive volumes & expected to crossover Aug 21 High of 285."

As per Gala, the Aroon Up/Down, KST & MACD Indicator suggest a possible up move. 200 DMA is continuously in rising Mode & Super trend is also in Positive mode since November 2020.

Setting a target of Rs465 apiece on JK Paper, Gala said, "If the stock price corrects downwards the buy levels are (255-243)-233-(223-218)." However, he also directed a stop loss of Rs190 apiece to be observed in the trade.

This week, markets keenly await the outcome of the Fed meeting scheduled on Wednesday. Investors look forward to Fed commentary amidst the Russia-Ukraine conflict, while a possible 25 basis point rate hike is on the cards.