Brigade Enterprises: Realty sector’s rising star with a long-term breakout

In the backdrop of a recent market recovery, followed by bouts of profit-taking and downward movements, the realty sectoral stocks have emerged as leaders. Among them, one notable player from the realty industry is shining brightly with a long-term continuation breakout.

Brigade Enterprises Ltd. is a diversified company involved in property development, property management services, hospitality, and education. The company operates in various segments, including Real Estate, Hospitality, and Leasing. In the Real Estate segment, Brigade focuses on developing and selling residential and commercial properties. Their Hospitality segment includes the operation of well-known hotels, while the Leasing segment involves office and retail space. Founded in 1986 by Mysore Ramachandra Setty Jaishankar, Brigade Enterprises Ltd. is based in Bangalore, India, and has a strong presence in South India.

Over the years, the company has completed more than 250 buildings, totalling over 70 million square feet of developed space, covering residential, office, retail, and hospitality sectors in cities like Bengaluru, Mysuru, Chennai, Ahmedabad, Hyderabad, and Kochi.

In the past several weekly trading sessions, Brigade Enterprises Ltd. has been consolidating within a tight range in an upward-sloping channel, with strong support from the 200 Daily Moving Averages (DMA). The 14-day RSI indicator is comfortably positioned in the bullish zone around the 76 level, and a positive crossover of the 5-13-26 DMA further indicates favourable momentum. What’s particularly noteworthy is the emergence of a breakout trendline, connecting peaks from November 02, 2021 (Rs 528.80) to September 12, 2022 (Rs 585). This signals the presence of a long-term continuation price pattern spanning nearly two years.

In recent trading sessions, Brigade Enterprises Ltd. surged to a high of Rs 718.85, surpassing the mentioned breakout trendline level of Rs 675, and closed at Rs 682.10, confirming the breakout of the mentioned price pattern. Following this breakout, the stock holds the potential to reach Rs 880, representing a substantial 30% gain from the breakout level.

Brigade Enterprises Ltd. has now captured the attention of both swing traders and long-term investors, offering a promising opportunity for further upside potential in this continually changing market. As the realty sector continues to shine, the company’s performance has become a focal point for those seeking growth and potential returns in the dynamic world of real estate.

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.