Rounding Bottom Breakout Stock – Nazara Technologies Jumps Over 3%!

Introduction

The bulls on the D-Street are celebrating as retail inflation hits a fresh 25-month low, staying comfortably within the RBI’s desired range of below 6%. This positive news has sent the Nifty and Sensex soaring with gains of over 0.5%, surpassing the psychological milestones of 18,700 and 63,000, respectively. While the broader markets are also basking in the joy, it’s Nazara Technologies that has captured the attention of market participants.

Let’s delve into the details and uncover the exciting developments surrounding this stock.

Nazara Technologies Shines

Nazara Technologies, a prominent player in the market, witnessed a remarkable rise in its share price by over 3% on Tuesday, hitting a fresh 7-month high. This surge in price has been accompanied by robust trading volume, surpassing both the 10 and 30-day average volumes, indicating substantial market interest. From a technical perspective, the stock has experienced a breakout from a ‘Rounding Bottom’ pattern, which further enhances its appeal.

The Rounding Bottom Pattern

After reaching a swing high of Rs 651.15 in January this year, the stock underwent a correction phase before finding support around the Rs 481.85 level. Subsequently, it began its ascent, only to encounter resistance near the previous swing high. This formation gradually evolved into a rounding bottom pattern, with the resistance range noted between Rs 648-652. However, the recent breakout above this resistance level has fueled the stock’s upward trajectory, backed by strong volume, signifying wider participation in the trend.

Technical Indicators Validate Positive Bias

Multiple technical indicators reinforce the positive outlook for Nazara Technologies. The daily MACD is on an uptrend and has rebounded, finding support at its nine-period average, underscoring the stock’s favourable momentum. Additionally, the daily RSI has recently generated a bullish crossover and is on a rising trajectory, further validating the positive bias. The Average Directional Index (ADX), a measure of trend strength, stands at 34.72, indicating considerable strength, and is currently trending upwards. Notably, the +DI is significantly above both the ADX and -DI, pointing to robust bullish strength in the stock.

Insightful Shareholding Pattern

Adding an intriguing aspect to the stock, Rekha Rakesh Jhunjhunwala holds a 9.96% stake in Nazara Technologies as per the latest shareholding pattern. Considering the stock’s impressive year-to-date returns of nearly 19% and all the aforementioned factors, it becomes evident that Nazara Technologies deserves a prominent spot on your radar.

Conclusion

With retail inflation hitting a 25-month low and the Nifty and Sensex jubilantly rallying, Nazara Technologies has emerged as a standout performer. Its surge in share price, coupled with the breakout from a rounding bottom pattern, indicates a strong upward momentum. Supported by positive technical indicators and influential stakeholders, Nazara Technologies showcases a promising outlook. As market enthusiasts continue to monitor its progress, the stock’s journey promises to be an exciting one.