🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Chart of the Week: 52-Week High Breakout + Increasing Volume!

Published 20-08-2023, 02:12 pm

The real estate space has done well after April 2023, leaving aside the last few weeks, wherein the Nifty Realty index retraced noticeably from the 52-week highs. While long-term investors might be inclined towards big names such as DLF (NS:DLF), Godrej Properties (NS:GODR), etc., those looking for steeper growth and willing to take a relatively higher risk might want to hunt in the smaller space.

Hemisphere Properties India is one such name in the real estate space with a market capitalization of INR 3,267 crore. The stock has disappointed investors since February 2021 when it made a high of INR 201.8. From there it came crashing down all the way to a low of INR 79.9, denoting a value erosion of 62%.

Image Description: Weekly chart of Hemisphere Properties India with volume bars at the bottom

Image Source: Investing.com

However, the recovery from these levels has also been astounding and the stock has almost delivered a 50% return from the lows. This rally seems strong and sustainable looking at the volume activity. When the stock bottomed out in March 2023 its 10-week average volume was 1.89 million shares. From there the stock rallied to INR 122.35 (as of Friday) and the average volume was recorded at 7.26 million shares.

While a one-day volume spike holds a good weightage, a jump in the average volume itself over a decent time frame indicates a consistent increase in demand for the share.

Now, on Friday, the stock rallied 6.72% and surged past a strong hurdle of INR 120, and closed at a new 52-week high. This breakout has instilled fresh confidence in the uptrend on a larger time frame.

This weekly breakout might propel the stock to the next level of INR 132 in the next week. Those looking to add a small-cap real estate firm to their portfolios for a few months can also eye a level of INR 160.

Read More: Momentum: Futures Traders Eyeing on this Bounceback!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.