Imagicaaworld Entertainment displays a remarkable rally amid market weakness

After a recent period of profit booking and a downward move in the markets, one standout stock from the amusement parks and hotel industry has been making waves. Imagicaaworld Entertainment Ltd witnessed a remarkable rally of over 10% in the last trading session, accompanied by strong trading volumes.

The company operates through various segments, including Tickets, Food and Beverages, Merchandise, Rooms, and Other Operations. The Tickets segment comprises theme park and snow park tickets, while the Food and Beverage segment covers park and hotel restaurants. The Merchandise segment includes park and hotel merchandise, and the Rooms segment relates to hotel accommodation. Additionally, the Other Operations segment includes services like parking, lockers, sponsorship, spa, revenue-sharing agreements, and lease rentals. Founded by Manmohan Ramanna Shetty on May 18, 2009, the company is headquartered in Mumbai, India.

Imagicaaworld’s stock price had previously experienced a multibagger rally, reaching its peak at Rs 56.20 on March 08, 2023. However, it subsequently underwent a retracement, with the lower end aligning with a support level that retraces over 38.2% from the impressive rally that began on June 21, 2022, around the Rs 12.50 level.

Recent trading days have seen a surge in buying interest in the stock, resulting in an upward movement following a bullish crossover of the 5-26 and 13-26 Daily Moving Average (DMA). Additionally, a breakout trendline has emerged by drawing a connection between the highs of March 08, 2023 (at the Rs 56.20 level), and June 20, 2023 (at the Rs 54 level), indicating a prolonged continuation price pattern of over 90 days.

In the last trading session, the stock rallied more than 10% in a single trading session and touched the breakout trendline, witnessing huge trading volumes of more than 5.69 million shares. To confirm the breakout, the stock needs to close above this trendline level (Rs 53.5) on a daily basis. If this happens, the stock has the potential to reach Rs 67, presenting a gain of approximately 25% from the breakout level (Rs 53.5). 

This development has caught the attention of swing traders and short-term investors, who are now keeping a close eye on Imagicaaworld Entertainment’s stock performance.

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.