Check the chart: With a 24% gain in a month, this hospital stock hit a new record high; Time to buy or book profit?
Mid-term traders could look to buy the stock now or when the price drops to Rs 450-500 for a possible target of Rs 750-1,000 in the next 6 months, they said.
The share price of Max Healthcare has increased from Rs 449 on April 24, 2023 to Rs 557 as recorded on May 24, 2023 – representing a 24% increase in 1 month.
On the weekly chart, the stock has broken out of a trendline connecting the tops of September 2021, October 2022, November 2022, April and May 2023.
This stock has made higher highs and higher lows on the weekly charts over the past 5 weeks. While some consolidation cannot be ruled out as it trades around overbought levels, it could be a good option in the medium term.
The Relative Strength Index (RSI) is at 78.2. RSI above 70 is considered overbought. This implies that the stock may show a pullback. The MACD is above the center line and the signal line, which is a bullish indicator.
In terms of price action, the stock is trading much higher than short- and long-term moving averages like the 5,10,30,50,100 and 200-DMA on the daily chart, which is a positive sign. pole for the bulls.
“Max Healthcare stock price started to rise from Rs 101.65 (September 2020) to Rs 472.60 (September 2021), creating a series of higher lows and higher highs. During the move, the stock consistently traded above the average. & super trending continuously in positive mode so far,” Bharat Gala, President – Technical Research, vent Securities said.
“The stock then consolidated in the 300 & 500 range from September 21st to April 23rd. Recently, a weekly Bull candle formed and the stock broke out above the daily trendline. September 21 and April 23, made a high of Rs 552, higher than the previous 5 swing highs,” he said.
“William %R, MACD & KST indicators show a positive increase in stock prices. Possible targets are Rs 750-900-1,000 for the next 6 months,” recommends Gala.
He added: “If the share price corrects downwards, the buy levels are Rs (519-498) – Rs 481-(Rs 465-455) the stop loss observed in the trade is Rs 430.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times. )