Realty, part of the residential-commercial project industry, has rallied over 170 per cent in a year compared to a 9 per cent gain seen in the Nifty Realty index in the same period. Experts suggest the momentum is still not over yet.
The real estate company bounced back after hitting a low of Rs 42.25 in April 2021 which also corresponds to the March 2020 low of Rs 38. It again took support near the 200-DMA back in December 2021 where it staged a smart bounce back.
Investors looking to put fresh money in the stock can consider now or on dips towards Rs 165-150 for an upside target of Rs 275-310, suggest experts.
The stock gave a multi-year breakout from a rectangle pattern formation on the weekly charts. It is trading close to levels last seen in May-August 2018.
Marathon Nextgen recorded a Golden Cross formation back in April 2022 post which the momentum picked up which pushed the stock towards fresh 52-week high in June 2022.
It hit a fresh 52-week high of Rs 202.75 on BSE on 16 June 2022. The stock also surpassed crucial resistance of Rs 179 last week on the weekly charts which augurs well for the bulls.
On the price front, the stock is trading well above all the crucial short- and long-term moving averages of 5,10,20,50,100 and 200-DMAs.
MACD is above its center and signal line; this is a bullish indicator. The Relative Strength Index or the RSI reading stood at 70.8 as of 17 June 2022. RSI above 70 is considered overbought. This implies that the stock may show a pullback.
“On mid-term charts, Marathon is moving sharply on the upside with higher highs and highs lows formation since April 2021. The stock has given a multi-year breakout and is currently trading at the highest level since August 2018,” Vidnyan Sawant, AVP – Technical Research, GEPL Capital, said.
“We witnessed accumulation in the stock at lower levels by forming a rectangle pattern post that it started moving with great momentum. Now it has breached its major hurdle of Rs 179 levels with a strong volume,” he said.
The RSI indicator on all timeframes is sustaining above the 60-70 mark indicating strong bullish momentum. MACD has shown a positive crossover above the zero line, which is suggesting a tendency for a positive trend.
“Going ahead, we expect the stock to continue its outperformance and move higher towards the mark of Rs 275 followed by Rs 310. On the downside Rs 165-150 zone would act as strong support for the stock,” recommends Sawant.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
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