(Timeframe: Weekly | Scale: Logarithmic)
The stock is challenging its "Blue Sky" zone after delivering a blowout earnings performance. While it faced intraday rejection at ₹22,200 (profit booking on news), the massive volume and 252% profit growth suggest that this resistance will likely be taken out soon.
🚀 1. The Fundamental Catalyst (The "Why")
The technical surge is fully supported by the Q3 FY26 numbers released this week:
> Profit Explosion: Net Profit jumped 252% YoY to ₹406 Crore, significantly beating estimates.
> Operational Growth: Revenue grew 12.6%, and the company showed resilience in margins.
> Expansion News: The board approved acquiring Veera Tanneries for ₹175 Cr, which the market views as a strategic move to secure land for future capacity expansion.
📈 2. The Chart Structure (The Box Breakout)
> The Box: The ₹14,980 – ₹22,200 range. This 7-month consolidation allowed the stock valuations to catch up with earnings.
> The Breakout Attempt: The stock spiked to ₹22,200 but failed to close above it.
- Interpretation: The long upper wick on the weekly candle indicates "Supply at ATH." Traders who bought the rumor sold the news. However, the body of the candle remains strong green, meaning the trend is still up.
📊 3. Volume & Indicators
> Volume Ignition: The volume of ~740K is an "Institutional Stamp." This is significantly higher than the average weekly volume, confirming that big funds are entering on the earnings beat.
> RSI: Rising in all timeframes. The Weekly RSI is entering the "Super Bullish" zone (60-80), which supports a trend continuation.
🎯 4. Future Scenarios & Key Levels
The stock is in "Price Discovery" mode, fighting the final resistance.
🐂 Bullish Target (Blue Sky):
- Trigger: A decisive Daily Close above ₹22,200.
- Target 1: ₹27,380
- Target 2: ₹29,420.
🛡️ Support (The "Must Hold"):
- Immediate Support: ₹19,500 – ₹20,000. The "Psychological Round Number" and recent breakout base.
- Stop Loss: A weekly close below ₹18,152 would invalidate the bullish view and signal a return to the sideways range.
Conclusion
This is a Grade A+ Setup.
> Refinement: The "wick" at 22,200 is temporary supply. The 252% Profit Growth acts as a fundamental floor.
> Strategy: Buy on dip opportunity.
The stock is challenging its "Blue Sky" zone after delivering a blowout earnings performance. While it faced intraday rejection at ₹22,200 (profit booking on news), the massive volume and 252% profit growth suggest that this resistance will likely be taken out soon.
🚀 1. The Fundamental Catalyst (The "Why")
The technical surge is fully supported by the Q3 FY26 numbers released this week:
> Profit Explosion: Net Profit jumped 252% YoY to ₹406 Crore, significantly beating estimates.
> Operational Growth: Revenue grew 12.6%, and the company showed resilience in margins.
> Expansion News: The board approved acquiring Veera Tanneries for ₹175 Cr, which the market views as a strategic move to secure land for future capacity expansion.
📈 2. The Chart Structure (The Box Breakout)
> The Box: The ₹14,980 – ₹22,200 range. This 7-month consolidation allowed the stock valuations to catch up with earnings.
> The Breakout Attempt: The stock spiked to ₹22,200 but failed to close above it.
- Interpretation: The long upper wick on the weekly candle indicates "Supply at ATH." Traders who bought the rumor sold the news. However, the body of the candle remains strong green, meaning the trend is still up.
📊 3. Volume & Indicators
> Volume Ignition: The volume of ~740K is an "Institutional Stamp." This is significantly higher than the average weekly volume, confirming that big funds are entering on the earnings beat.
> RSI: Rising in all timeframes. The Weekly RSI is entering the "Super Bullish" zone (60-80), which supports a trend continuation.
🎯 4. Future Scenarios & Key Levels
The stock is in "Price Discovery" mode, fighting the final resistance.
🐂 Bullish Target (Blue Sky):
- Trigger: A decisive Daily Close above ₹22,200.
- Target 1: ₹27,380
- Target 2: ₹29,420.
🛡️ Support (The "Must Hold"):
- Immediate Support: ₹19,500 – ₹20,000. The "Psychological Round Number" and recent breakout base.
- Stop Loss: A weekly close below ₹18,152 would invalidate the bullish view and signal a return to the sideways range.
Conclusion
This is a Grade A+ Setup.
> Refinement: The "wick" at 22,200 is temporary supply. The 252% Profit Growth acts as a fundamental floor.
> Strategy: Buy on dip opportunity.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer: This analysis is my personal view & for educational purposes only. They shall not be construed as trade or investment advice. Before making any financial decision, it is imperative that you consult with a qualified financial professional.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.