Phoenix Mills breaks out from bullish up flag pattern, surges over 6.5% with strong volumes

On the weekly expiry trading session, the Nifty index started positively, driven by global cues, and surged to new all-time highs. However, in the afternoon session, it relinquished all gains and closed near the day’s lowest point. Despite this market weakness, a remarkable stock in the realty sector demonstrated relative strength by soaring over 6.5% on significant trading volumes, signalling a breakout of the “Bullish Up Flag Pattern.”

The mentioned stock is The Phoenix Mills Ltd, which specializes in real estate property development. The company operates in two segments: Property and Related Services, and Hospitality. The Property and Related Services segment offers licensed mall and office spaces and develops commercial and residential properties. As India’s leading retail mall developer and operator, it boasts a retail space of approximately 0.64 million square meters across 9 malls in 6 gateway cities. The Hospitality segment involves managing hotels and restaurants. Established in 1905, the company is headquartered in Mumbai, India.

From a technical perspective, analysing the stock’s performance from June 7, 2023 (Rs 1644.85) to July 7, 2023 (Rs 1647.70) reveals a breakout trendline known as the Bullish Up Flag Pattern, suggesting a potential significant movement. Notably, this breakout is supported by robust trading volumes surpassing the average volume of the last 30 days, indicating a healthy breakout. In today’s session, the stock experienced strong buying interest, resulting in an impressive surge of over 6.5%.

Currently, Phoenix Mills Ltd has managed to close above the breakout trendline level (Rs 1648) at Rs 1677.90, confirming the breakout of this technical price pattern. The minimum target for this pattern is approximately Rs 1900, representing a potential increase of over 15% from the breakout level.

With the stock price entering uncharted territory and the 14-week relative strength index (RSI) comfortably residing in the bullish zone at a level of 71.30 RSI. Indicating strong momentum, both momentum traders and long-term investors should consider keeping Phoenix Mills Ltd on their radar for the upcoming sessions.

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.