Published on: December 12, 2023
As the market buzzes around an all-time high and traders search for the next lucrative opportunity, the recent surge in Indiamart’s share price has become a focal point of discussion.
Positioned as a midcap stock, Indiamart had been languishing in a sea of underperformance, trailing behind both the Nifty500 and the Midcap Index. However, the recent move has brought the stock into the limelight, with traders now grappling to understand the dynamics behind this unexpected rally.
When the two like-minded traders meet, here is how they discuss about the chart setup.
Amit: Hey, have you noticed Indiamart’s share price lately? It’s been lagging behind the broader indices for quite some time.
Vivek: Yeah, I did. It’s interesting, especially given that benchmark indices have been hitting all-time highs. What’s going on with Indiamart?
Amit: Well, it was trading at seven-month lows not too long ago. I was scratching my head, wondering why it wasn’t catching the bullish wave.
Vivek: Seven-month lows? That’s quite a slump, especially when everything else seems to be on an upward trajectory. What changed?
Amit: That’s the thing. Something did change, and that’s what’s got my attention. There’s been a breakout from the consolidation zone.
Vivek: A breakout, you say? Now that’s intriguing. Breakouts can signal a shift in momentum. What else are you seeing?
Amit: Check this out – there’s a bullish crossover on the Adaptive Relative Strength Index (ARSI). It’s like the stars are aligning for a potential upward move.
Indiamart Daily Candlestick Chart
Source: TradePoint
Vivek: Interesting. A bullish crossover and a breakout – those are strong indicators. But you know how it is; we need more than just indicators. What else?
Amit: Ah, the icing on the cake – the Rising Three candlestick pattern. It’s like the charts are shouting, “Reversal!”
Vivek: The Rising Three pattern? That’s a pretty convincing sign. So, are you considering trading Indiamart?
Amit: Absolutely. With all these signals pointing towards a reversal, it’s hard to ignore the potential. But I’m also keeping an eye on the sustainability of this momentum.
Vivek: Wise move. These trends can be fickle. Let’s keep an eye on it and see how it plays out. It’s a stock worth keeping on our radar.
Amit: Agreed. And if you do enter a trade, let me know how it goes!
Disclaimer: This article is purely educational and does not constitute financial advice. Please consult a professional before making any investment decisions.
