Take This Aditya Birla Group Stock on Your Trading Radar

  • Stock Market Analysis
  • Editors Pick

About the company:

Aditya Birla Fashion and Retail Ltd (NS: ADIA ) is an Indian fashion retail company headquartered in Mumbai. The company has over 3,031 stores with a presence across ~25,000 multi-brand outlets with more than 6,500 points in department stores across India. The stock is trading at a 4.33% discount to its 52-week high level. The 52-week high and 52-week low range is Rs 234 – Rs 126.

Technical observations:

One week time frame: (Chart 1)

On a weekly time frame, ABFRL stock will probably break out of an Ascending Triangle pattern. Upon close observation, you will realize that the week of September 20 is a Bullish Engulfing Candle. Notably, since October 19 week, the share has taken strong support on the 50-day EMA line. We expect the scrip to move up with the help of an increase in volumes. Relative Strength Index (or RSI) is above 60, indicating positive momentum on the stock. Long-term investors should enter at the current level and keep a stop loss of Rs 189 (previous swing low) on a weekly closing basis.
AB1
One day time frame: (Chart 2)

It would be best to observe from the chart below that ABFRL share has made an Inverted Head and Shoulders pattern on a daily time frame. The scrip attempted to break out of an essential neckline of Rs 224 a couple of times in the previous week. High volumes accompanied this move. RSI is above 60, and the Moving Average Convergence Divergence (or MACD) line crosses the signal line below. It also signals positive momentum on the scrip. Positional traders should enter as soon as the share crosses Rs 224 level and stays above it. They should maintain the stop loss at Rs 198 on a daily closing basis.
AB2
Conclusion:

We believe the ABFRL share to maintain positive bias and move upwards in the coming sessions. Short-term traders should take a position if the stock sustains above Rs 224 levels while keeping a strict stop loss of Rs 219 on a daily closing basis.

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100
  • Banwari Lal @Banwari Lal
    Sar aditay birla captil hold 120 kaya karna h
    Like 0
  • Avinash Avin @Avinash Avin
    And it did move up strong in last two sessions :). Thanks for the analysis.
    Like 1
  • Rahul Sharma @Rahul Sharma
    This is how articles should be written...not only recommendations but logic supported by charts are also mentioned. So much to learn from simply observing and matching with own studies.Thanks
    Like 2
  • Rahul Sharma @Rahul Sharma
    This is how articles should be written...not only recommendations but logic supported by charts are also mentioned. So much to learn from simply observing and matching with own studies.Thanks
    Like 1
  • pritesh malpani @pritesh malpani
    thanks
    Like 0
  • Davinder Charik @Davinder Charik
    Good informations
    Like 1

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