is down a little over 2 per cent in one year compared to 5 per cent rise seen in the Nifty50, but chart patterns suggest bulls could make a comeback.
The stock with a market capitalisation of more than Rs 81,000 cr hit a 52-week high of Rs 1,138 on 3rd September 2021 but since then the trend went sideways.
The stock has fallen by over 27 per cent from Rs 1,138 to Rs 829 on 18 May 2022. The stock took support near Rs 650-660 levels in the past 2 months before bouncing back.
It is trading below 5, 100, and 200-DMA while it rose above 10, 20, and 50-DMA.
Stock Radar: Godrej Consumer buy for a target of 1000, says Shitij Gandhi
The stock has formed a double bottom formation on the weekly charts and now a close above the 200-DMA placed at Rs 908 will give momentum to the bulls which could take the stock towards Rs 1000, says Shitij Gandhi, Senior Technical Analyst, SMC Global Securities.
The stock has formed a double bottom formation on the weekly charts and now a close above the 200-DMA placed at Rs 908 will give momentum to the bulls which could take the stock towards Rs 1,000, suggest experts.
Double bottom is formed at the bottom and indicates the end of a falling market. This pattern is identical to the double top, except for the inverse relationship in price.
Read more on Double Bottom here
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“After testing its 52-week high in September 2021 stock has witnessed a steep cut as prices fell towards one year low of 660 in March 2022,” Shitij Gandhi, Senior Technical Analyst, SMC Global Securities, said.
“Thereon, the stock has formed a double bottom pattern on weekly charts and shown a sharp recovery as stock once again reclaims a momentum above its 200 days exponential moving average,” he added.
At the current juncture, the stock has moved back above the falling trend line of the downward sloping channel which points towards the change in trend from a medium-term perspective.
Gandhi further added that bulls are likely to keep control over the moves as far the price holds above the Rs 720 mark.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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