Breakout after more than 6 months of consolidation indicates activity.The Stock is consolidating after a major breakout, testing support levels.
Current RSI is in a healthy Neutral zone with room for upward movement. Historically, RSI has been ranging between 40-70 during trending phases.
Price Action indicates a consolidation Phase in which the Stock is seen digesting recent gains around ₹38-40 levels
Long-term Strategy
Near-term: consolidation expected between ₹35-42 for 1-3 months
Target 1 (T1): ₹48.10 - 21% upside (6-9 months)
Target 2 (T2): ₹60.46 - 52% upside (12-18 months)
Target 3 (T3): ₹80.03 - 101% upside (18-24 months)
Investment Strategy:
New Investors can incorporate Wait & Buy Strategy(entry on dip to ₹34-36 levels).
Current Levels are Risky due to MACD divergence.
Wait for MACD to turn positive above signal line.
Wait for High Volume breakout above 42.
Caution: ₹34.43 level is crucial for bull case continuation, Stop Loss will be large i.e. below ₹32 (15-20% risk)
Existing Holders can consider Partial Booking(Consider booking 25-30% profits if near ₹42).
Add on dips to ₹34-36 range is suggested.
Conclusion
While the long-term bullish structure remains intact as long as price holds above 31, the negative MACD suggests caution in the near term. The stock is likely to consolidate or correct slightly before resuming its upward journey. This presents a better entry opportunity for patient investors while existing holders should manage positions carefully.
Risk-Reward: Currently unfavorable for new entries due to MACD divergence. Better to wait for either MACD improvement or price correction to support levels.
Current RSI is in a healthy Neutral zone with room for upward movement. Historically, RSI has been ranging between 40-70 during trending phases.
Price Action indicates a consolidation Phase in which the Stock is seen digesting recent gains around ₹38-40 levels
Long-term Strategy
Near-term: consolidation expected between ₹35-42 for 1-3 months
Target 1 (T1): ₹48.10 - 21% upside (6-9 months)
Target 2 (T2): ₹60.46 - 52% upside (12-18 months)
Target 3 (T3): ₹80.03 - 101% upside (18-24 months)
Investment Strategy:
New Investors can incorporate Wait & Buy Strategy(entry on dip to ₹34-36 levels).
Current Levels are Risky due to MACD divergence.
Wait for MACD to turn positive above signal line.
Wait for High Volume breakout above 42.
Caution: ₹34.43 level is crucial for bull case continuation, Stop Loss will be large i.e. below ₹32 (15-20% risk)
Existing Holders can consider Partial Booking(Consider booking 25-30% profits if near ₹42).
Add on dips to ₹34-36 range is suggested.
Conclusion
While the long-term bullish structure remains intact as long as price holds above 31, the negative MACD suggests caution in the near term. The stock is likely to consolidate or correct slightly before resuming its upward journey. This presents a better entry opportunity for patient investors while existing holders should manage positions carefully.
Risk-Reward: Currently unfavorable for new entries due to MACD divergence. Better to wait for either MACD improvement or price correction to support levels.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.