The stock, with a market capitalization of over Rs 81,000 crore, reached a 52-week high of Rs 1,138 on September 3, 2021, but the trend has since reversed.
On May 18, 2022, the stock fell by more than 27% from Rs 1,138 to Rs 829 The stock has supported near Rs 650-660 level in the last 2 months before bouncing back.
It is trading below 5, 100, and 200-DMA while it has risen above 10, 20, and 50-DMA.
The stock has formed a double bottom formation on the weekly chart and will now move bulls closed above the 200-DMA at Rs 908 which could push the stock towards Rs 1,000, experts suggest.
The double bottom is formed at the bottom and indicates the end of a falling market. This pattern is similar to the double top, without the opposite relationship of price. Read more about the double bottom here
Shitij Gandhi, a senior technical analyst at SMC Global Securities, said:
“There, the stock has formed a double bottom pattern on the weekly chart and has shown a sharp recovery as the stock has again recovered a momentum above its 200-day moving average,” he added.
At the current juncture, the stock is back above the downward trend line of the downward sloping channel which points to a change of trend from a medium term perspective.
Gandhi added that bulls could control rice as long as prices were above the 720 mark.
(Disclaimer: The recommendations, suggestions, opinions and opinions offered by the experts are their own. These do not represent the views of the Economic Times)