Brigade Enterprises witnesses breakout of bullish continuation pattern!

Brigade Enterprises witnesses breakout of bullish continuation pattern!

by 5paisa Research Team Last Updated: 2022-12-15T16:59:54+05:30

On Wednesday, the stock has jumped over 5% and is the top-performing stock from the Nifty Realty Sector.

The Brigade Group is one of India’s leading property developers with over three decades of expertise in building a positive experience for all stakeholders. The company has developed many landmark buildings and transformed the skyline of cities across South India, namely - Bengaluru, Mysuru, Mangaluru, Chikmagalur, Hyderabad, Chennai, Ahmedabad and Kochi with developments across the Residential, Commercial, Retail, Hospitality and Education sectors. Since its inception, Brigade has completed 250+ buildings amounting to over 70 million sq. ft of developed space across a diverse real estate portfolio.

The stock had witnessed an unprecedented run-up of over 450% from the May 2020 lows to November 2021 highs. After this massive up-surge, the stock underwent a healthy correction phase, wherein, the stock corrected nearly 24% from its November 2021 highs and this consolidation lasted for about 10-weeks. Interestingly, this consolidation took shape of ascending triangle pattern on the weekly chart. An Ascending Triangle pattern is a bullish continuation pattern and is characterized by a rising lower trendline and a flat upper trendline.

On Wednesday, the stock has jumped over 5% and is the top-performing stock from the Nifty Realty Sector. With this strong up-move, the stock has logged a resolute breakout from the past 10-weeks consolidation pattern, signalling a resumption of up-move and offering a fresh entry opportunity.

As the stock is trading near its all-time high levels, it is above all the short and long-term moving averages. The stock is meeting Mark Minervini’s trend template. It is trading above 40, 30 and 10-weekly averages and all of them are trending up. At the same time, there is the desired sequence. It is also meeting Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy. This structure indicates that the stock is in a clear uptrend.

The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-weeks, which is bullish. The daily MACD is pointing northward while sustaining above its nine-period average thus validating positive bias in the stock.

The technical evidence indicates a strong upside in the coming weeks with strong support placed in the region of Rs 476-480.

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