Sequent (D): Strongly Bullish, Fundamentally-Driven BreakoutThe stock has confirmed a major breakout from a 3-year structural turnaround. The move is backed by a massive earnings beat, high-conviction volume, and aligned indicators across all timeframes.
📈 1. The Long-Term Structure (The Turnaround)
- The Crash (2021-2023): After hitting its All-Time High (ATH) in June 2021, the stock entered a brutal correction, falling ~81% to form a base around ₹62 in February 2023.
- The Recovery: Since March 2023, the stock has been in a steady uptrend, forming a classic "rounding bottom" or recovery structure.
- The Hurdle: The recovery faced a stiff horizontal resistance trendline at the ₹239 - ₹241 zone. This level acted as a ceiling in October 2024 (High: ₹240.70) and rejected price action multiple times recently.
🚀 2. The Catalyst & Breakout (Today's Action)
- The Catalyst: The breakout is fueled by Q2 FY26 Earnings , where the company reported a staggering 209.1% YoY jump in Net Profit
- The Breakout: Today (Nov 18, 2025), the stock decisively shattered the ₹240 resistance, surging 7.10% to close near ₹247 .
- Volume Confirmation: The move was backed by massive volume of 9.15 Million shares, a sharp spike compared to the drying volume seen during the recent consolidation. This confirms institutional buying.
📊 3. Technical Indicators
- EMAs: Short-term EMAs are in a PCO (Price Crossover) state across Monthly, Weekly, and Daily timeframes, signaling a synchronized bullish trend.
- RSI: The Relative Strength Index is rising across all three timeframes, confirming that momentum is expanding with price.
🎯 4. Future Scenarios & Targets
The breakout has opened the door to higher levels, with a specific structural target in focus.
- The Gap (The Magnet): An unfilled gap on the daily chart has been identified from the steep 2021 correction. This gap exists between ₹270 and ₹276 (formed in August 2021). Gaps often act as magnets for price.
🐂 Bullish Targets:
1. Target 1 (Gap Support): ₹270 . The stock is likely to run toward the bottom of this unfilled gap.
2. Target 2 (Gap Fill): ₹295 . If momentum sustains and fills the gap, the next extension level is near ₹295.
🛡️ Support (The Entry Zone):
- Re-test Level: The breakout level at ₹239 - ₹240 has now flipped from resistance to support. A pullback to this zone would be a classic "buy-the-dip" opportunity to enter the trend with a favorable risk-reward ratio.
Conclusion
This is a high-quality setup. The combination of a technical breakout , earnings explosion, and gap-fill potential makes this a strong candidate for continuation. Watch for a hold above ₹239 .
