Avenue Supermarts Ltd, the company behind the popular retail chain DMart, is showing early signs of a comeback. After a recent correction, the stock appears to be forming a positive pattern on the technical charts.
Currently, the stock is trading at ₹4,140.80. In the last trading session, it gained around 1.42%, or ₹58.10. This small but steady move is being watched closely by market participants.
The stock recently corrected about 15% from its previous highs. However, it is now holding well at lower levels. This kind of price action often shows that the selling pressure is slowing down and buyers are stepping in again.
Analysts say that DMart is now trading near its 9-day Exponential Moving Average (EMA). This is a key level for traders. If the stock can stay above this average in the coming days, it may signal the start of a new bullish phase.
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Over the past week, Avenue Supermarts has gained 1.74%. But on a one-month basis, the stock is still down by 7.06%. Despite this short-term weakness, the stock has delivered gains of 14.07% over the last three months and 14.52% over the last six months.
However, looking at the longer time frame, the stock is still down by 13.63% over the past year. This shows that while the stock has struggled in the past, it is slowly finding support and gaining strength again.
Market experts are keeping an eye on the 9-day EMA level. If the stock can hold and build above this line, it could attract more buying interest. This would be a strong signal that the stock is preparing for a possible uptrend.
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The recent upward move, along with stability at key support levels, suggests that Avenue Supermarts is trying to build a base. This is a pattern often seen before a breakout.
Investors are advised to watch the stock closely in the coming days. A few more sessions of positive movement could confirm the bullish setup. This might create an opportunity for medium-term gains.
However, the recent correction and negative one-year performance are reminders that risks remain. It’s important to track the stock’s price action and manage positions carefully.
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