Nagreeka Capital & Infrastructure Ltd. Based on Cup and Handle P
1. Pattern Analysis
- Cup and Handle Pattern:
- Timeframe: 5 Years
- Description: The chart exhibits a classic cup and handle pattern, a bullish continuation pattern indicating potential for further upside. The resistance at ₹28 has been breached with a strong breakout, confirming the pattern.
- The extended timeframe of this pattern enhances its reliability and suggests a strong underlying bullish momentum.
2. Volume Analysis
- Volume Behavior:
- Volume remained low during the formation of the cup, signifying accumulation.
- Significant increase in volume during the breakout above ₹28 indicates strong buying interest, validating the breakout.
3. Price Action Analysis
- Key Resistance Level:
- ₹28: The breakout point and previous resistance level.
- Support Levels:
- ₹22–₹24: Expected pullback or retest zone post-breakout.
- ₹18: The lower boundary of the handle, providing strong long-term support.
- Candlestick Analysis:
- The breakout candlestick is a large bullish bar with a close near its high, demonstrating strong momentum and positive sentiment.
4. Validation of Bullish Signal
- The breakout above ₹28 with high volume confirms the bullish signal.
- The handle formation, lasting several months, indicates consolidation and prepares the stock for a breakout with a higher probability of success.
5. Target Setting
- Cup and Handle Target:
- Depth of the cup = ₹28 - ₹12 = ₹16.
- Target = ₹28 + ₹16 = ₹44.
- Incremental Targets:
- Target 1: ₹35 (+25% from ₹28).
- Target 2: ₹44 (+57% from ₹28).
6. Entry and Stop Loss
- Entry Levels:
- Primary Entry: Above ₹28 after confirmation of the breakout.
- Pullback Entry: Near ₹22–₹24 if the stock retests the breakout level.
- Stop Loss:
- Place a stop loss at ₹22, below the pullback zone.
7. Trade Setup Summary
- Entry Levels:
- Above ₹28 for breakout confirmation.
- Near ₹22–₹24 for pullback entry.
- Targets:
- Target 1: ₹35 (+25%).
- Target 2: ₹44 (+57%).
- Stop Loss: ₹22.
8. Final Notes
Nagreeka Capital & Infrastructure Ltd. has confirmed a breakout from a 5-year cup and handle pattern, supported by a strong surge in volume. The extended timeframe of the pattern and robust breakout signal a high-probability trade setup. A pullback to ₹22–₹24, if it occurs, would offer an optimal entry point.
