Kaynes tech (W): Bullish - V-Shape Recovery from Panic BottomTimeframe: Weekly | Scale: Logarithmic
The stock is staging a classic reversal from the bottom of its 6-month consolidation range. The recent panic drop was absorbed by "smart money," as evidenced by the massive volume Hammer candle.
📉 1. The Context (The Panic & Absorption)
> The Trigger: The sharp drop to ₹3,745 in early December was triggered by a brokerage note raising concerns about disclosures.
> The Absorption (The Hammer):
- Price Action: The stock plunged to a low of ₹3,712 but rallied sharply to close near ₹4,265 . This created the long lower wick (Hammer).
- Volume (61 Million): This massive volume confirms that while retail investors panic-sold, institutional buyers stepped in to buy the dip at the valuation floor. This is Climax Volume.
🕯️ 2. Current Price Action (The Pause)
> This Week's Candle: The "Neutral Bearish" candle (Spinning Top/Doji) with lower volume ( 15.06 Million ).
- Interpretation: After the violent volatility of the previous week, this "quiet" week is positive. It shows that the selling pressure has evaporated (volume dropped from 61M to 15M), and the price is stabilizing above ₹4,100 .
📊 3. Technical Indicators
> RSI Divergence: RSI rising from oversold territory confirms the momentum shift.
> Range Play: The stock is strictly following the ₹3,745 (Support) – ₹7,800 (Resistance) box. Trading at the bottom of the box offers the highest Risk:Reward ratio.
🎯 4. Future Scenarios & Trade Setup
The strategy is a classic "Range Trade."
> 🐂 Bullish Case (The Journey to Top):
- Trigger: A breakout above this week's high ( ~₹4,390 ).
- Target 1: ₹5,500 (Mid-range resistance).
- Target 2: ₹7,822 (The ATH). A move from support to resistance represents a ~100%+ potential gain .
>🛡️ Support (The Stop Loss):
- Critical Stop: ₹3,700 . The low of the Hammer candle is the "Line in the Sand." If the price breaks this, the "absorption" thesis fails.
Conclusion
This is a High-Conviction Setup . The Hammer on Climax Volume at major support is one of the most reliable signals in technical analysis.
> Refined View: The "Panic" is over. The "Accumulation" is done. The stock is now likely to drift upwards as the governance fears fade and the focus shifts back to its Semiconductor expansion plans.
