Retail Giant Avenue Supermarts Witnesses Bullish Momentum Amid Expansion Plans
Shares of DMart, listed under Avenue Supermarts, reached a 52-week high on Wednesday following the company’s announcement regarding its store count expansion. With the operator of DMart unveiling the opening of a new store in Bengaluru, the total number of stores has now reached 366. This development drove the stock price up by 2.5% to reach a peak of Rs 4831 on the Bombay Stock Exchange (BSE), pushing the firm’s market capitalization to Rs 3.11 lakh crore.
Market activity reflected strong investor interest, with a turnover of Rs 4.66 crore as 9,732 shares of the firm changed hands on Wednesday. This surge propelled the market cap of the firm to Rs 3.12 lakh crore. The stock’s one-year beta of 0.2 suggests low volatility during this period.
In terms of technical indicators, the relative strength index (RSI) of DMart stock stands at 76.3, signaling that the stock is currently in the overbought zone. Additionally, Avenue Supermarts shares are trading above key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a strong bullish trend.
Leading brokerage firm CLSA has initiated coverage on the retail stock with a target price of Rs 5,107, accompanied by a buy rating for DMart shares. CLSA emphasized the vast addressable market exceeding Rs 50,000 crore, with less than 5 percent organized, and highlighted the potential for private labels to drive further share gains.
Commenting on DMart’s technical outlook, Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, stated, “DMart has given a symmetrical triangle pattern breakout on the daily chart with good volume moving above the resistance zone of Rs 4,200 levels after a strong consolidation in the last 2 years.” Koothupalakkal added, “The RSI indicator has also confirmed the buy signal with a trend reversal, and we anticipate this stock to rally up to Rs 5,200- Rs 5,400 levels.”
