Short-term traders can look to buy the stock now or on dips below 800-750 levels.
The stock rose over 4% in a week and over 17% in the last 3 months, which helped the stock to break out from a consolidation pattern last week.
The realty stock hit a high above 700-750 levels in November 2021, but it failed to hold the momentum and underwent a corrective phase on the weekly charts.
The stock found support above 350 levels in February 2023 from where it staged a smart bounce back which helped the stock to surpass the critical resistance zone of November 2021 in July 2023, but it failed to hold the momentum.
It witnessed some selling pressure but managed to again reclaim the resistance zone in early September 2023. As long as the stock trades above this critical support, bulls are likely to remain in charge.
In terms of price action, the stock is trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100, and 200-DMA on the daily charts, which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 61. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
“LODHA’s stock is currently hovering near its record high, indicating a powerful momentum behind it. Previously, the 730 mark posed a barrier, but now it stands as a solid support for the stock,” Omkar Patil, Technical Research Associate at GEPL Capital Ltd, said.
“Transitioning from a phase of consolidation, the stock hints at the beginning of a bullish trend. The stock’s price finding stability around the 12-week EMA reinforces this optimistic view,” he said.
“Additionally, the RSI on the weekly chart displays a shift in range, further underscoring the escalating momentum in its prices,” highlighted Patil.
“Going ahead, we expect the prices to move higher to the 950 level where the stop loss must be 765 strictly on the closing basis,” he recommends.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)