Short term traders can look to buy the stock on dips for a possible target of Rs 800-850 in the next 3-4 weeks, suggest experts.
The stock has rallied from Rs 602 as of 20th September 2023 to Rs 742.90 recorded on 20 October 2023 which translates into an upside of over 20%.
The momentum helped the stock to hit a fresh record high of Rs 796 on 10 October 2023, but it failed to hold on to the momentum.
However, history suggests that bulls have made a comeback in the stock after marginal dips. On the weekly charts, it is trading comfortably above the 12-week EMA.
The stock picked up momentum after a 6-month-long consolidation seen on the weekly charts. The realty stock moved in a range where 553 acted as a stiff resistance and on the downside 380 acted as a crucial support.
It finally managed to break out from the range in June 2023 and consolidated around 550 levels till September before hitting fresh record highs.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,l00, and 200-DMA on the daily charts.
The daily Relative Strength Index (RSI) is at 75.4. RSI above 70 is considered overbought. This implies that stock may show pullback, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.
“Prestige Estate stock is navigating within an ascending channel, highlighting a robust upward trajectory and is currently trading at its all-time high,” Omkar Patil, Technical Research Associate at GEPL Capital, said.
“As a standout outperformer in the realty sector, the stock’s ratio charts against the Nifty Realty showcase a significant breakout, reaching highest levels since July 2015,” he said.
“Having broken free from a consolidation pattern in the prior week, there’s a clear indication of the stock’s upward movement. This bullish sentiment is reinforced by the stock’s consistent positioning above the 12-week EMA,” highlights Patil.
Moreover, the RSI on the weekly chart, being firmly above the 60 mark, underscores the sustained positive momentum driving the stock.
“Going ahead we expect the prices to move higher till 850 level where the stop loss must be 710 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)