UNITED SPIRITS LTD
Technical View
- The analysis of the daily timeframe suggests a potential continuation of the primary trend, which has demonstrated strength since February 2023.
- Recently, the price experienced a correction of nearly 14% due to profit booking, following an impressive run-up of 125%.
- This behavior indicates that informed investors may be maintaining their positions, which helps to limit drawdowns—a positive sign.
- Additionally, we are observing the formation of a possible cup and handle pattern, supported by a short-term moving average that is trending positively.
- The Relative Strength Index (RSI) across daily and higher timeframes is trading well above its median, without displaying any divergence from the price, thus indicating sustained momentum.
- The stock shows improved earnings per share (EPS) strength and demonstrates strong relative outperformance compared to the Nifty50 benchmark, coupled with increasing buyer demand.
- Furthermore, the stock exhibits lower relative volatility, reducing the likelihood of erratic price movements.
- Consequently, we recommend purchasing shares of UNITEDSPR with a target price of 1762 and suggest maintaining a stop loss at 1513.
