The stock has maintained an upward trajectory since March 2023. However, it is presently undergoing a correction phase that could test key support zones before resuming its next leg of rally.
What Does the Chart Indicate About the Stock’s Correction and Long-Term Rally Potential?
About the Stock’s Technical Setup
After a sustained rally from early 2023, the stock has entered a corrective phase, offering traders and investors an opportunity to reassess entry and exit levels. The technical structure remains bullish over the long term, supported by higher highs and higher lows on the weekly chart. Yet, the immediate momentum appears to be cooling, suggesting a short-term retracement toward major support.
The stock is expected to find strong support between ₹40–₹38. This region aligns with a critical Fibonacci retracement zone and historical price congestion, which can limit the downside risk if buyers step in near these levels.
Main Analysis and Strategy
From a short-term perspective, a correction up to ₹40 is probable, after which the stock could stage a rebound toward ₹55. A successful breakout above ₹55 may confirm the continuation of the larger uptrend, targeting ₹83 over the long term. However, a decisive fall below ₹38 would invalidate this bullish view.
💡 Traders are advised to sell 40% of holdings now to protect gains and retain flexibility. Maintain a stop-loss at ₹37 for the remaining position. Consider re-entering or accumulating additional quantity on dips near ₹41.
Risk management is crucial in volatile conditions. Adjusting stop-loss levels in tandem with price action helps lock in profits while allowing the trade to evolve naturally. When the price climbs to ₹48, the stop-loss can be revised to ₹43, providing a cushion as the stock resumes its upward move.
If the stock rises to ₹53 and ₹71, incrementally tighten the stop-loss to ₹46 and ₹58 respectively. This trailing approach ensures profits are secured at every major leg of the rally. The ideal exit level remains ₹80, marking the completion of a potentially large trending cycle.
✅ The long-term target of ₹83 remains intact as long as the stock sustains above ₹38. Investors with patience can capitalize on this trend by adhering to disciplined stop-loss management.
Market participants who actively track derivatives setups often align stock-specific strategies with index-based indicators. Many short-term traders use Nifty Trading Tips to gauge overall sentiment before committing to fresh stock entries.
💰 Momentum traders also monitor Bank Nifty Tips as an early confirmation tool to time sectoral strength and spot opportunities aligned with broader market movement.
Support, Resistance, and Targets Summary
| Level Type | Price (₹) | Action / Comment |
|---|---|---|
| Immediate Support | ₹40–₹38 | Strong buying zone; limits downside. |
| Initial Target | ₹55 | Likely recovery level post-correction. |
| Stop-Loss | ₹37 | Exit below this point invalidates uptrend. |
| Long-Term Target | ₹83 | Potential high in next major rally cycle. |
Investor Takeaway
The chart continues to reflect an upward bias, with corrections providing healthy consolidation zones. Long-term investors should use declines toward ₹40 as accumulation opportunities while respecting stop-loss discipline. Short-term traders may prefer partial profit booking and dynamic re-entry strategies. Stay informed on derivative sentiment and sector rotation through timely analytical inputs available at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
