The stock has shown a significant character change, breaking a long-term corrective downtrend with exceptional force. All short-term and long-term indicators are aligning, suggesting a new bullish leg has begun.
📉 1. The Long-Term Context (The "Big Picture")
- Massive Run-Up: After a parabolic 1,720% surge from its March 2020 bottom, the stock hit a major peak in July 2024.
- Corrective Downtrend: This was followed by a healthy 8-month correction (Jul 2024 – Feb 2025), which allowed the stock to build a new base.
- Reversal Pattern: In recent months, the stock has reversed this trend by forming a clear pattern of Higher Lows, indicating that selling pressure has been absorbed and accumulation has taken place.
🚀 2. The Current Breakout (Today's Decisive Action)
Today's price action is the most significant bullish signal for the stock this year.
- High-Volume Surge: The stock surged +6.48% on massive volume of 75.43 Million shares, indicating strong institutional interest.
- Major Trendline Break: The price gapped up above the angular resistance trendline (formed since the July 2024 high) and, most importantly, closed firmly above it.
- Short-Term Breakout: This move also broke and closed above a minor, short-term resistance, adding to the bullish conviction.
📊 3. Key Technical Indicators
The underlying momentum across all timeframes supports this breakout:
- RSI: The Relative Strength Index is rising on the Daily, Weekly, and Monthly charts, showing broad-based, building momentum.
- EMAs: Short-term Exponential Moving Averages are in a "PCO" (Price Crossover) state on all three timeframes, confirming the trend is strongly bullish.
🎯 4. Future Scenarios & Key Levels to Watch
The path forward is now defined by two clear levels:
🐂 The Bullish Case (Breakout Confirmation)
- Immediate Hurdle: The next major test is the horizontal resistance at ₹265.
- Confirmation: A decisive close above ₹265 would confirm the breakout and open the door for a significant rally.
- Target: If this momentum is sustained, the next logical price target is the ₹300 level.
🐻 The Bearish Case (Fake Breakout)
- Trigger: If today's move is a "fakeout," the price will fail to breach ₹265 and fall back below the broken angular trendline.
- Confirmation: A close back below the gap-up level (today's open) would be a bearish sign.
- Target: This failure would likely see the stock fall to retest its closest support at ₹245.
Conclusion
Today's high-volume, gap-up breakout above a multi-month downtrend line is a powerful bullish event. The indicators are all aligned, suggesting this is the start of a new upward move. The key level to watch for confirmation is ₹265.
📉 1. The Long-Term Context (The "Big Picture")
- Massive Run-Up: After a parabolic 1,720% surge from its March 2020 bottom, the stock hit a major peak in July 2024.
- Corrective Downtrend: This was followed by a healthy 8-month correction (Jul 2024 – Feb 2025), which allowed the stock to build a new base.
- Reversal Pattern: In recent months, the stock has reversed this trend by forming a clear pattern of Higher Lows, indicating that selling pressure has been absorbed and accumulation has taken place.
🚀 2. The Current Breakout (Today's Decisive Action)
Today's price action is the most significant bullish signal for the stock this year.
- High-Volume Surge: The stock surged +6.48% on massive volume of 75.43 Million shares, indicating strong institutional interest.
- Major Trendline Break: The price gapped up above the angular resistance trendline (formed since the July 2024 high) and, most importantly, closed firmly above it.
- Short-Term Breakout: This move also broke and closed above a minor, short-term resistance, adding to the bullish conviction.
📊 3. Key Technical Indicators
The underlying momentum across all timeframes supports this breakout:
- RSI: The Relative Strength Index is rising on the Daily, Weekly, and Monthly charts, showing broad-based, building momentum.
- EMAs: Short-term Exponential Moving Averages are in a "PCO" (Price Crossover) state on all three timeframes, confirming the trend is strongly bullish.
🎯 4. Future Scenarios & Key Levels to Watch
The path forward is now defined by two clear levels:
🐂 The Bullish Case (Breakout Confirmation)
- Immediate Hurdle: The next major test is the horizontal resistance at ₹265.
- Confirmation: A decisive close above ₹265 would confirm the breakout and open the door for a significant rally.
- Target: If this momentum is sustained, the next logical price target is the ₹300 level.
🐻 The Bearish Case (Fake Breakout)
- Trigger: If today's move is a "fakeout," the price will fail to breach ₹265 and fall back below the broken angular trendline.
- Confirmation: A close back below the gap-up level (today's open) would be a bearish sign.
- Target: This failure would likely see the stock fall to retest its closest support at ₹245.
Conclusion
Today's high-volume, gap-up breakout above a multi-month downtrend line is a powerful bullish event. The indicators are all aligned, suggesting this is the start of a new upward move. The key level to watch for confirmation is ₹265.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.