Since hitting a 52-week low last year, shares in DMart (listed as Avenue Supermarts) have increased by 46%. On May 18, 2023, the DMart operator's shares hit a 52-week low of Rs 3353.05. It rose to a new 52-week high of Rs 4888 today, up 45.77% from the previous year's low. The stock has reached an overbought zone as a result of today's rise, indicating a relative strength index (RSI) of 76.3.
On the BSE on Tuesday, DMart shares increased by 2.75% to a high of Rs 4888. The company's market value increased to Rs 3.11 lakh crore.
The company's 5581 shares changed hands on Tuesday, resulting in a turnover of Rs2.69 crore for the retail sector stock.With a one-year beta of 0.2, the stock shows little volatility during that time.Technically speaking, the shares of Avenue Supermarts are now trading higher above the moving averages of five, twenty, fifty, hundred, and 200 days.
"DMart was seen trading in a consolidation for a while, but it recently witnessed a strong breakout from a bullish triangle pattern on the weeklycharts with incremental volumes that propelled the price toward Rs4800," stated Gaurav Bissa, VP, InCred Equities. Dmart retested the swing high breakout level at Rs. 4600 as a consequence of some profit booking following the recent pullback in the overall market.It has now made a wise recovery and is ready to climb up to the Rs5200 levels."
Aditya Gaggar, Director of Progressive Shares, commented on the technical prognosis for the stock, saying, "The stock showed signs of an ascending triangle formation breakout, which was backed up by an RSI trendline breakout and an increase in volume." The trend-following indicator ADX further validates the advance with a reading of 35, indicating the presence of a strong trend, while the MACD verifies price action by providing a bullish crossing. On December 1, 2023, at Rs 3,950, we had already started a technical report on the stock, which had declined to Rs 3,860 in order to reach the goal price of Rs 4,885 (achieved) and Rs 5,820.
The price goal for CLSA is Rs 5,107. It gave DMart shares a buy call. Less than 5% of the addressable market, which exceeded Rs 50,000 crore, was organized, according to CLSA. According to CLSA, market growth might be driven by private brands in the upcoming phase.
Prabhudas Lilladher's technical research analyst Shiju Koothupalakkal believes that the stock would rise to between Rs. 5,200 and Rs. 5,400.
After a strong two-year consolidation in the range of 800 points, Dmart has given a symmetrical triangle pattern breakout on the daily chart with good volume, moving above the resistance zone of Rs 4,200 levels. It is currently trading above the cluster of moving averages levels of Rs 3800, which is strong support for the short term. We expect this stock to rise up to Rs 5,200–Rs 5,400 levels, as the RSI indicator has also supported the buy signal with a trend reversal,” Koothupalakkal stated.
