With Raksha Bandhan to be celebrated across India on Friday, August 28, investors also have to look at stocks that might have interesting technical prospects. For this reason, market expert Sumeet Bagadia, Executive Director at Choice Broking, selected Prestige Estates Projects as his stock to buy in this market.
Bagadia says the real estate stock is showing a constructive technical structure after recovering strongly from lower levels. The momentum is gaining, the key moving averages are supported in the current period and a positive weekly trendline is also favorable.
Prestige Estates Projects: Buy at ₹1,642
Bagadia recommended buying Prestige Estates Projects around ₹1,642, and additional accumulation can be made on dips towards ₹1,615.
The technical analyst has set two upside targets for the stock:
- Target 1: ₹1,810
- Target 2: ₹1,888
We know that the higher target is about 17% higher than Wednesday’s close, which is relatively high given the current market price.
At 9:45 AM on Thursday, Prestige Estates Projects shares were up 0.52% at ₹1,622.30 each on the BSE.
Bullish Technical Structure
As Bagadia said, Prestige Estates Projects has developed a positive technical setup on the weekly chart for a good recovery from lower levels, he added.
The stock has kept above the moving averages, and the improving weekly trendline and the 50-week EMA are supporting it. These technical indicators indicate that the overall recovery is intact as long as the stock remains above critical support levels.
Bagadia also pointed to the stock’s recent movement around the ₹1,600 level. The analyst said consolidation near this zone may also mean a base formation.
So any breakout from that consolidation could be a big trigger for the next movement of the stock upward.
RSI Signals Improving Momentum
Momentum indicators are also supporting the positive view. The weekly relative strength index (RSI) was around 58.05 and above the crucial 50 level.
An RSI above 50 is generally considered to indicate that buying momentum is stronger than selling pressure. In this case, the indicator supports the view that the stock’s recovery could continue to be supported if price action confirms the bullish setup.
A sustained move above the consolidation zone could help Prestige Estates Projects maintain its recovery towards higher levels, Bagadia said.
Key Support Levels To Watch
And while the technical picture is good, investors would be wise to keep an eye on the support zones.
According to Bagadia, the rising weekly trendline, 50-week EMA and ₹1,520 support zone are important levels for the stock.
If we hold these support levels, we can maintain this bullish momentum. If there is a break below major supports, the technical picture will get affected, and in the near term, everything will be negative.
Bagadia suggested an entry around ₹1,642 and buying on dips towards ₹1,615. The strategy is on the basis of the expectation that the stock will hold on to its recovery and eventually rise towards ₹1,810 and ₹1,888.
In the present environment, Prestige Estates shares are in a very good position.
Prestige Estates Projects is catching the eye as real estate remains on investors’ radar. The recent rally in the stock, good moving average alignment and improving momentum are the reasons for the bullish technical view.
But technical recommendations are based on market conditions and can change as price action develops. Investors should listen to the suggested support and resistance levels instead of regarding the targets as guaranteed returns.
With Bagadia predicting a move towards ₹1,888, Prestige Estates Projects could provide up to 17% upside to the reference price.
As Raksha Bandhan approaches, the stock has become Bagadia’s featured pick, with ₹1,810 and ₹1,888 being the key upside levels and ₹1,520 as a critical support zone.
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