Macrotech Developers shares topped the buying list in the Nifty500 index, with the biggest ever single-day rally on March 2, continuing the uptrend for the fourth consecutive session, despite a subdued market sentiment.
The stock moved closer to Rs 1,000 mark with more than 17 percent gains, forming a robust bullish candlestick pattern on the daily charts, making a higher-high-higher-low formation. It climbed over all key short-term moving averages and hit the medium-term moving average (100-day EMA - around Rs 998) intraday.
With the consistent fall for 10 straight sessions and losing of 28 percent in those days, the stock hit the lowest level (Rs 711) since July 2021 and entered the oversold level on February 24 with the momentum indicator RSI (relative strength index) falling up to around 14 levels, which ultimately resulted into a sharp rebound in stock price on February 27In fact, the above fall was especially after nearly a five-month consolidation.
The stock has formed a long bullish candle on the daily charts which resembles a bullish engulfing kind of pattern on the daily charts on February 27, and since then there has seen a consistent uptrend, with big volumes. In fact, it has almost recovered all those 10-day losses in four trading sessions, which is a V-shaped recovery.
Fundamentally, the interest rate hike concerns may be weighed on the stock prices as Nifty Realty index itself was under pressure in the same period, falling nearly 14 percent since the beginning of this calendar year till February 24. However, in current week, the index gained nearly 7 percent.
If the stock gets back above 200-day EMA (exponential moving average), then there could be further northward journey, and any close above the big bearish candle's high of January 27 can take the stock price to near Rs 1,150, experts said.
"The stock has recovered sharply and is nearly up 36 percent this week and is almost engulfing the range of the last two weeks. The entire move this week too is aided with volumes as the stock as formed a V-bottom reversal pattern," Viraj Vyas, Technical Analyst for Institutional Equities at Ashika Stock Broking.
Given the intensity of price action witnessed this week, he feels the stock might look to consolidate as it faces an immediate hurdle at Rs 1,025 (200-day EMA), while immediate support is expected at the Rs 930-level.
Having said that, on a larger degree chart, the stock continues to make lower highs and lower lows as only a break above Rs 1,150-level can aid a bullish breakout, the expert said.
Vidnyan Sawant, AVP - Technical Research at GEPL Capital said currently, the stock is approaching its highest point in the past three weeks, indicating that demand has been driving the price up.
The key support levels for the stock are at Rs 800 and Rs 711, while the resistance levels on the higher end are at Rs 1,055 and Rs 1,140, he feels.
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