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

Published 20-08-2023, 02:12 pm
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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!

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