Narayana Hrudayalaya meets trend template of Mark Minervini
The stock of Narayana Hrudayalaya Limited has formed a hammer-like candlestick pattern and thereafter, marked the sequence of higher tops & higher bottoms. From the low of Rs 204, the stock has gained 435.50 per cent in 92 weeks.
On Friday, the stock has given a breakout of symmetrical triangle patterns on the daily chart. This breakout was supported by the above 50-day average volume. Further, the stock has formed a sizeable bullish candle on the weekly as well as on the daily chart.
Currently, the stock is meeting the criteria of Mark Minervini's trend template. The current market price of the stock is above the 150-day (30-week) and the 200-day (40-week) moving averages. The 150-day moving average is above the 200-day moving average. Since the last 350 trading sessions, the stock is trading above its 200-day moving average.
The 50-day (10-week) moving average is also above both, the 150-day as well as 200-day moving averages. The current stock price is above the 50-day moving average. Also, the current stock price is 68 per cent above its 52-week low and currently, it is trading at an all-time high.
In the last couple of trading sessions, the stock has outperformed the frontline indices. Also, it has relatively outshined Nifty 500 with a decent margin. The relative strength comparison with Nifty 50 and Nifty 500 is marking a higher high. On the weekly chart, Mansfield's relative strength is quoting above its zero line for the last 33 weeks, showing a strong performance compared to the broader market.
The momentum indicators and oscillators are also portraying a bullish picture. On all the major timeframes, the leading indicator i.e. the 14-period RSI is in bullish territory. Most importantly, on the weekly chart, the RSI has taken support in the zone of 60-61 mark and started rising higher, which indicates range shift as per the RSI range shift rules. On the weekly chart, the MACD line just crossed the signal line, and the histogram became green.
Going ahead, as per the measure rules of the symmetrical triangle, the upside target is placed at Rs 690, followed by Rs 720 level. On the downside, the 20-day EMA is likely to provide a cushion in case of any immediate decline. The 20-day EMA is currently placed at the Rs 587.05 level.
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