Chart Check: Up 40% from May lows, this hospital stock could reclaim Rs 5,000 levels soon; here’s why

The stock bounced back after hitting a 52-week low of Rs 3365 on 26 May 2022. It closed at Rs 4769 on 21 December which translates into an upside of over 40%.

Traders who missed the rally can look at buying the stock now or on dips for a possible target of Rs 5000 in the next 3-4 weeks, suggest experts.

The stock has rallied more than 8% in a month and more than 25% in the last 6 months.

The stock has been forming higher highs – higher lows structure and is holding well above its rising trend line on the weekly scale which is a positive sign for the bulls.

The stock recorded a breakout from a Symmetrical Triangle pattern earlier in December and is trading above the breakout range.

ET CONTRIBUTORS

In terms of price action, the stock is trading well above the short- and long-term moving averages of 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

“Apollo Hospital share price has retested its previous breakout zones of Symmetrical Triangle and formed a strong bullish candle on daily scale with noticeable volumes,” Arpit Beriwal, Analyst, Equity Derivatives & Technicals, MOFSL, said.

“It is respecting its 50-DEMA and formed a Symmetrical price pattern on a daily scale which is a Bullish price pattern. Relative Strength Index is also turning upward which suggests strength in the stock going forward,” he added.

Buying is seen across the healthcare space and the stock is likely to outperform in the coming sessions. “Looking at overall chart structure on the daily scale we expect the stock to move upwards towards 5050 zones from current levels with a stop loss below Rs 4600 zones on a closing basis in the next 3-4 weeks,” recommends Beriwal.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)