ANANTRAJ - Post-Breakout Retest & Bounce

The Setup: Stage 1 Breakout Resumption

ANANTRAJ has confirmed a major breakout from a lengthy consolidation base (what you correctly identify as a Stage 1 Breakout). The current price action is the best-case scenario following such a move:

The Initial Breakout: The stock rallied sharply (around September/October) out of its large, multi-month base, confirming the end of the consolidation phase.

The Retest: The price then pulled back to the top of the former resistance zone (around ₹600 - ₹620). This retest is a crucial technical event that confirms the old resistance has turned into new support.

The Bounce: The price is now successfully bouncing off this retested support zone (as seen by the recent candles), signaling that demand has stepped in aggressively at the critical level. This is the low-risk entry point to participate in the Stage 2 uptrend.

Key Technical Confirmation

• Trading Above All MAs: The stock is trading firmly above all key moving averages, which are stacked in a bullish order. This confirms the established uptrend is resuming.
  
• Strong Relative Strength: The Relative Strength line is robustly positive and trending up, confirming that ANANTRAJ is a market leader and is strongly outperforming the Nifty.
  
• Volume Signature: Volume spiked during the initial breakout and has quieted down during the shallow retest, confirming that supply dried up when the price returned to support. Volume must increase on the bounce to confirm conviction.
  
• Sector Tailwinds: The underlying strength in the Real Estate sector provides a favorable backdrop for this move.
  

The Trade Plan

• Entry Signal: Entry is confirmed on a daily close above the current consolidation box (above ₹660). The goal is to ride the momentum toward the next major resistance.
  
• Stop Loss (Risk Management): A clear, objective stop loss should be placed just below the retested support zone, for example, around ₹580 - ₹600. This defines a tight, low-risk setup.
  
• Target Expectation: The initial target is the Weak High near ₹880-₹900. If momentum holds, the stock should move into new All-Time Highs in price discovery mode.
  

⚠️ Potential Risks & Cautionary Notes

• Failure to Hold Support: The primary risk is a failed retest. If the stock closes decisively below the ₹600 support zone, the bullish thesis is invalidated, and it signals that the Stage 1 breakout was a trap.
  
• Volatility: Real estate stocks can be highly volatile. Use a stop loss strictly to manage the daily swings.
  
• Momentum Reversal: The trade relies on the continuation of momentum. Monitor daily price action closely for signs of reversal once the price nears the ₹880-₹900 high.
  

#Disclaimer: This is for educational and observation purposes only and is not financial advice. Always adhere strictly to your defined stop-loss and manage your risk according to your personal trading plan.