The realty stock hit a 52-week high of Rs 1045 on 19 January 2022 but then the trend went sideways. It took support near Rs 500 level in May and then in June before bouncing back.
The stock has rallied more than 21 per cent in a week and over 24 per cent in a month. It closed at Rs 675.40 on 8 July 2022.
Traders looking for a short-term opportunity can look at buying the stock on dips for a target of Rs 770, suggest experts.
On the price front, the stock is trading above 5,10,20,30,50, and 100-DMA but below 150 and 200-DMA.
On the weekly charts, prices have shown a bounce back from the level of 61.8% retracement of the prior advance from Rs 120 level (April 2020) to Rs 1045 (January 2022).
Price closed above the 13-week SMA in the week gone by which acted as resistance since February 2022, indicating a positive undertone of the stock.
Agencies“On the daily timeframe, we witnessed a breakout from an inverted head and shoulder pattern on 7th July 2022, which is a positive reversal price pattern,” Vidnyan Sawant, AVP – Technical Research, GEPL Capital, said.
“The above breakout was followed by huge volumes and a gap. The gap can be considered as a breakaway gap which indicates as a beginning of a new trend,” he said.
The RSI plotted on the weekly timeframe is rising and has sustained above the 50-mark which strengthens the positive momentum of the stock.
Based on the price action and technical parameters, we expect the stock to move higher towards Rs 770 levels in the next 1-2 months, he said. Sawant recommends a stop loss of 568, strictly on a closing basis.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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