Avanti Feeds Ltd.: Poised for a Strong Upswing with Breakout

Avanti Feeds Ltd. established on January 6, 1993, by Venkateswara Rao Alluri, company is a leading manufacturer of shrimp feed and exporter of shrimp. The company operates through three primary segments: Shrimp Feed, Shrimp Processing, and Power. The Shrimp Feed segment focuses on producing and marketing shrimp feed used in aquaculture, while the Shrimp Processing segment involves purchasing shrimp from farmers for processing and export. The Power segment generates energy from wind mills. Avanti Feeds Ltd. is headquartered in Hyderabad, India.

Market Performance and Technical Analysis

Amid the recent market recovery, Avanti Feeds Ltd. has exhibited notable resilience, achieving a significant rally of 20.32% in the past week. This surge has positioned the stock above the breakout trendline of a substantial long-term continuation price pattern that has been forming over the last 6.5 years.

The stock initially peaked at Rs 980 in November 2017, followed by an extensive consolidation phase characterized by a three-way corrective pattern within a triangular formation. This phase found robust support near the 78.6% Fibonacci retracement level of its previous rally, slightly below the 200-week moving average. The critical breakout trendline, extending from early January 2020 to mid-January 2024, delineates the significant breakout level for this continuation pattern.

Recently, Avanti Feeds has gained attention by breaching this key breakout trendline. The breakout was confirmed with a weekly closing at Rs 615.40, above the trendline level of Rs 581. Furthermore, a recent weekly candle supported by the Super Trend (ATR 10 – Factor 1) has added momentum to the stock’s upward movement.

Future Outlook

With the breakout confirmed, Avanti Feeds Ltd. is poised to target a price of Rs 785, representing a potential gain of 35% from the breakout level of Rs 581. This optimistic target underscores the company’s robust growth potential within the aquaculture and shrimp export industry.

Conclusion

Avanti Feeds Ltd. presents a compelling investment opportunity with its strong technical setup and positive market momentum. Investors should closely monitor the stock’s performance to capitalize on the confirmed breakout above the established level, positioning themselves to benefit from the anticipated upward trajectory.

Given the company’s solid foundation and promising outlook, Avanti Feeds Ltd. stands out as an attractive option for those seeking growth in the aquaculture sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.