Narayan Hrudalaya breaks resistance in style, aiming for a 20% upmove!

Narayana Hrudalaya Ltd is engaged in providing economical healthcare services. It has a network of multispecialty and super speciality hospitals spread across multiple locations.

On Friday, the stock is seen firing on all cylinders as it soared nearly 9% and registered a fresh 52-week high. With this strong up-move, the stock has logged a resolute breakout of the stage-3 Cup and Handle pattern on the weekly time frame. The Cup and Handle pattern is 27 weeks long and it has a depth of nearly 24%. Interestingly, the breakout of this pattern is backed by strong volume. Volumes for the day is the highest single-day volume registered since August 10 and remember we are just halfway through the trading session on Friday.

The stock from a technical standpoint as the stock is trading at a fresh 52-week high and is above all the short and long-term moving averages. It is trading above 20, 50, 100 and 200-DMA and all of them are trending up. At the same time, there is the desired sequence.

From an O’Neil methodology perspective, the stock has an EPS Rank of 61 which is a fair score and a RS rating of 65, which is seen improving and a buyer demand at B+ which is evident from recent demand for the stock.

The trend strength indicator, Average Directional Index (ADX) is at 19, which shows the strength. And this ADX is in up-trending mode. The +DI is much above the -DI and ADX. This structure is indicating the bullish strength in the stock. The daily 14-period RSI has moved above the swing high and registered a fresh 14-period high, which is bullish for the stock. The daily MACD is in an uptrend and is seen rebounding taking support at its nine periods average thus validating positive bias in the stock.

Recently, the company intimated the execution of the Share Purchase Agreement by Health City Cayman Islands Ltd. (HCCI), a wholly owned subsidiary of Narayana Hrudayalaya Limited to acquire ENT in Cayman Ltd (EICL).