Get started

RRKABEL

RR Kabel Ltd | Volume Area High Breakout Setup RR Kabel is currently trading above the Volume Area High, indicating strong acceptance at higher levels. Price is hovering near a key resistance zone and showing signs of a potential breakout with volume expansion. Technical View: Acceptance above VAH → bullish bias Strong base formation after consolidation Breakout confirmation expected on sustained price + volume Trade Plan: Buy on breakout / hold above resistance Target: 1650 Stop Loss: Daily close below 1345
NSE:RRKABELLong
by Chart_Code
3
RR KABEL : Breakout Soon Candidate NSE:RRKABEL 🔹 Technical View Strong recovery from ₹900 zone Price testing major resistance at ₹1,500–1,510 Above ₹1,510 (weekly close): Breakout → ₹1,650–1,800 Support: ₹1,380–1,400 Structure turning higher high–higher low → bullish bias 🔹 Fundamental Snapshot Strong brand in wires & cables Consistent growth, improving margins Beneficiary of housing, infra & electrification demand 🔹 Outlook Above ₹1,510: Momentum trade active Below ₹1,380: Consolidation risk Medium–Long term: Structurally bullish Disclaimer: This content is shared strictly for educational and informational purposes. We are not SEBI-registered investment advisors or analysts. The views expressed are personal opinions, based on publicly available data and market observations. Please consult a SEBI-registered investment advisor before taking any investment or trading decisions. Any actions taken based on this content are entirely at your own risk and responsibility. Trade Secrets By Pratik
NSE:RRKABELLong
by Trade_Secrets_By_Pratik
2
RRKABEL: Cup & Handle Pattern Could Trigger 30% Upside RallyNSE:RRKABEL Perfect Storm: How Cup & Handle Pattern Could Trigger 30% Upside Rally Price Action Analysis: Candlestick Patterns: - Doji Formation: Multiple doji candles during handle formation indicate indecision and potential reversal - Bullish Engulfing: Strong bullish engulfing pattern on breakout day, showing buying pressure - Higher Highs/Lows: Clear pattern of higher highs and higher lows post-breakout - Rejection Candles: Long lower wicks during handle formation show buying support Price Structure: - Swing: Clear swing low at ₹853 (March 2025) and swing high at ₹1,850 (previous year) - Impulse Waves: Strong impulsive moves during the breakout phase indicate institutional participation - Corrective Waves: Orderly corrective structure during cup and handle formation - Price Momentum: Accelerating price momentum post-breakout with minimal pullbacks Market Structure: - Trend: Transition from downtrend to sideways consolidation to uptrend - Support Respect: Multiple tests of support levels without breakdown showing strength - Resistance Breaks: Clean break above multiple resistance levels with conviction - Price Velocity: Increasing price velocity on breakout indicates strong momentum Intraday Price Action: - Opening Gaps: Positive opening gaps during the breakout phase show overnight interest - Closing Strength: Consistent closing in the upper portion of the daily range - Pullback Behaviour: Shallow pullbacks with quick recoveries indicate a strong underlying bid - Volume-Price Sync: Price advances accompanied by volume expansion Volume Spread Analysis: Volume Patterns: - Base Formation: Declining volume during cup formation indicates a lack of selling pressure - Handle Volume: Minimal volume during handle formation, showing controlled supply - Breakout Volume: Significant volume spike on breakout confirming institutional participation - Volume Trend: Above-average volume sustaining post-breakout Volume Indicators: - Accumulation Phase: Volume patterns suggest institutional accumulation during the base - Breakout Confirmation: 2-3x average volume on breakout day - Follow-through: Consistent volume support in subsequent sessions - Volume Price Analysis: Positive volume-price correlation during upward movement Technical Patterns: Primary Pattern: Cup & Handle Formation - Cup Formation: The stock formed a classical cup pattern from Jan 2025 to March 2025, with the left rim at approximately ₹1,420 levels - Handle Formation: A clean handle pattern developed from May to July 2025, showing controlled consolidation with diminishing volume - Breakout Confirmation: Strong breakout above ₹1,420 resistance with increased volume, signalling pattern completion - Pattern Reliability: The 6-month cup formation provides a strong technical foundation for sustained upward momentum Secondary Pattern: Ascending Triangle - Formation Period: June to July 2025 within the handle structure - Resistance Level: Horizontal resistance at ₹1,420 tested multiple times - Support Trend: Rising support line indicating accumulation phase - Breakout: Clean breakout above triangle resistance with volume expansion Support & Resistance Levels: Key Support Levels: - Immediate Support: ₹1,350 (breakout pullback level) - Secondary Support: ₹1,280 (handle low) - Major Support: ₹1,200 (psychological level and previous resistance) - Critical Support: ₹1,080 (cup base level) Key Resistance Levels: - Immediate Resistance: ₹1,500 (psychological level) - Target Resistance: ₹1,650 (cup depth projection) - Extended Target: ₹1,800 (previous swing high) - Long-term Resistance: ₹1,850 (52-week high) Base Analysis: Base Characteristics: - Base Type: Cup with handle base formation - Duration: 7 months (Jan 2025 to July 2025) - Depth: Approximately 35% correction from highs - Volume Pattern: Declining volume during base formation, expanding on breakout - Base Quality: High-quality base with proper structure and time frame Base Strength Indicators: - Volatility Contraction: Price volatility decreased during handle formation - Volume Dry-up: Minimal selling pressure during consolidation - Support Holding: Multiple tests of support levels without breakdown - Institutional Activity: Likely accumulation phase based on volume patterns Trade Setup: Entry Strategy: - Primary Entry: ₹1,420-1,430 (on breakout confirmation) - Secondary Entry: ₹1,380-1,400 (on pullback to breakout level) - Aggressive Entry: ₹1,350-1,360 (deeper pullback support) Entry Confirmation Signals: - Volume Expansion: Minimum 1.5x average volume on entry - Price Action: Close above ₹1,420 for two consecutive sessions - Momentum: RSI above 50 and trending upward - Moving Averages: Price above 20 and 50-day moving averages Exit Levels: Profit Targets: - Target 1: ₹1,500 (5.5% upside) - Psychological resistance - Target 2: ₹1,650 (16% upside) - Cup depth projection - Target 3: ₹1,800 (27% upside) - Previous swing high - Extended Target: ₹1,850 (30% upside) - 52-week high Exit Strategy: - Partial Profit: Book 25% at Target 1 - Scale Out: 50% at Target 2 - Trailing Stop: Implement 8-10% trailing stop after Target 2 - Final Exit: Complete exit at Target 3 or on stop-loss trigger Stop-Loss Strategy: Stop-Loss Levels: - Conservative: ₹1,320 (7% below entry) - Moderate: ₹1,280 (10% below entry) - Aggressive: ₹1,250 (12% below entry) Stop-Loss Management: - Initial Stop: Below handle low at ₹1,280 - Trailing Stop: Move to breakeven after 5% profit - Progressive Stops: Raise stops with each target achievement - Time Stop: Exit if no progress within 4-6 weeks Position Sizing: Risk-Based Sizing: - Conservative Approach: 1-2% of portfolio risk - Moderate Approach: 2-3% of portfolio risk - Aggressive Approach: 3-5% of portfolio risk Position Calculation: - Risk Per Share: Entry price minus stop-loss level - Position Size: (Portfolio Risk Amount) / (Risk Per Share) - Example: For ₹1,400 entry with ₹1,280 stop, risk = ₹120 per share - Capital Allocation: Maximum 5-8% of total portfolio in a single position Risk Management: Risk Control Measures: - Position Sizing: Limit individual position to 5% of portfolio - Stop-Loss Discipline: Strict adherence to predetermined stop levels - Diversification: Maintain exposure across multiple sectors - Correlation Risk: Avoid concentration in similar cable stocks Risk Monitoring: - Daily Monitoring: Track volume, price action, and sector performance - Weekly Review: Assess progress toward targets and adjust stops - News Monitoring: Stay updated on company and sector developments - Market Correlation: Monitor broader market conditions Sectoral Backdrop: Indian Cable Industry Outlook: - Market Growth: The market is projected to grow from USD 10.01 billion in 2025 to USD 17.08 billion by 2032, exhibiting a CAGR of 7.94% during the forecast period - Infrastructure Push: India's National Grid capacity is expanding continuously under the PM Gati Shakti National Master Plan, which is expected to add around 26,988 circuit km capacity by 2024-2025 - Renewable Energy: India has observed a substantial rise in the demand for wires and cables due to the country's ambitious renewable energy goals Growth Drivers: - Smart Cities: The development of smart cities in the country, along with the increase in electronic devices in the household, would increase the demand - Government Investment: India Wires and Cables Market would grow on the back of rapidly growing investment by the government towards the development of infrastructural projects - Electrification: Growing electricity demand is driving transmission and distribution network expansion Fundamental Backdrop: Company Profile: - Market Position: RR Kabel is now the 4th largest W&C Company in India by value. - Global Presence: With a global presence spanning over 67 countries, this electrical company has established a strong international footprint - Financial Performance: Revenue: 7,618 Cr · Profit: 312 Cr Financial Metrics: - Market Cap: Mkt Cap: 16,529 Crore (down -17.5% in 1 year) - Valuation: Stock is trading at 7.68 times its book value - Promoter Holding: Promoter Holding: 61.8% - 52-Week Range: The 52-week high is ₹1825 and the 52-week low is ₹750 Investment Considerations: - Sector Tailwinds: Strong sectoral growth prospects with government infrastructure push - Market Leadership: Established position as the 4th largest cable company in India - International Exposure: Diversified revenue streams from 67 countries - Valuation Concerns: Recent 22.8% decline in market cap may indicate value opportunity My Take: The technical setup for NSE:RRKABEL presents a compelling opportunity with the successful completion of a cup and handle pattern. The 8-month base formation, combined with strong sectoral tailwinds and the company's market leadership position, creates a favourable risk-reward scenario. The breakout above ₹1,420 with volume confirmation suggests institutional participation and potential for sustained upward momentum toward the ₹1,650-1,800 target range. Key success factors include strict adherence to stop-loss levels, proper position sizing, and monitoring of broader market conditions. The sectoral growth prospects, driven by infrastructure development and renewable energy initiatives, provide fundamental support for the technical breakout. Keep in the Watchlist and DOYR. NO RECO. For Buy/Sell. 📌Thank you for exploring my idea! I hope you found it valuable. 🙏FOLLOW for more 👍BOOST if you found it useful. ✍️COMMENT below with your views. Meanwhile, check out my other stock ideas on the right side until this trade is activated. I would love your feedback. Disclaimer: "I am not a SEBI REGISTERED RESEARCH ANALYST AND INVESTMENT ADVISER." This analysis is intended solely for informational and educational purposes and should not be interpreted as financial advice. It is advisable to consult a qualified financial advisor or conduct thorough research before making investment decisions.
NSE:RRKABELLong
by Karanshah137
27