Gravita India shares broke out of an inverse head and shoulders pattern near ₹1,100 with strong volume. The measured target points to ₹1,450–₹1,500.
Alpha Score of 67 reflects moderate overall profile with strong momentum, strong value, weak quality, moderate sentiment.
Gravita India shares are breaking out of an inverse head and shoulders pattern on the weekly chart, a setup traders watch for trend reversals after prolonged declines.
The stock cleared the neckline near ₹1,100 last week on above-average volume, confirming the pattern. The measured target from the pattern's depth points toward ₹1,450–₹1,500 over the next 12–18 weeks, assuming the breakout holds. The neckline now becomes a support zone.
The inverse head and shoulders is a reversal pattern that typically ends a downtrend. In Gravita's case, the left shoulder formed near ₹800 in late 2023, the head bottomed around ₹540 in March 2024, and the right shoulder completed near ₹750 in mid-2024. The neckline connecting the peaks took 14 months to form, giving the breakout technical weight.
Weekly relative strength index (RSI) is above 60 and rising, leaving room before overbought levels near 70. The moving average convergence divergence (MACD) on the weekly chart gave a buy signal last month, with the line crossing above the signal line.
Volume confirmation is key. Last week's bar traded roughly 1.8 times the 10-week average, a level technicians often look for to validate breakouts. A failure to sustain above ₹1,100 on a weekly close would weaken the pattern. The next support sits near ₹1,020, the 20-week moving average.
The stock's fundamentals add context. Gravita India, a lead recycler and exporter, reported revenue of ₹3,200 crore for the last fiscal year. The company has expanded into lithium-ion battery recycling, a business line that could open a second growth engine. That narrative runs alongside the chart setup.
For technicians tracking the pattern, the measured move of roughly 35% from the neckline is a textbook projection, not a guarantee. The breakout needs follow-through in the coming weeks to stay valid.
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