Varun Beverages rallies 4% to hit record high after major block deal - Moneycontrol

Varun Beverages shares rallied 4 percent intraday to hit a record high of Rs 1,474 on April 5 after more than Rs 60 crore worth of shares changed hands in a block trade. The stock has been in an uptrend for the fourth straight session, rising more than 8 percent in four days. It has seen breakout of couple of months of consolidation range on April 3. About 4.31 lakh shares, equivalent to 0.1 percent of paid-up equity worth Rs 62.88 crore, have changed hands, reports CNBC-TV18, at an average price of Rs 1,457 apiece. Varun shares traded at Rs 1,457 on the NSE, up 3 percent over previous close, at 1:23pm. The stock has formed a bullish candlestick pattern on the daily charts with above average volumes. It has been making higher tops higher bottoms for third straight session. The stock has been trading above all key moving averages (21, 50, 100 and 200-day EMA - exponential moving average), which is a positive sign. On the monthly timeframe, it has maintained upward journey for the third consecutive month, making higher highs higher lows for the second straight session, while also on a weekly scale, there was a strong bullish candlestick pattern formation for the third day in a row. Even with today's rally, the Bollinger Band has expanded on both sides, with the stock trading in the upper band for the tenth straight session, indicating the continued momentum in the stock. "For several months now, the stock has maintained a strong uptrend, but starting from December 2022, it began consolidating both in terms of time and price. Despite experiencing some turbulence in broader market during February and March 2023, the stock has remained resilient," Viraj Vyas, Technical and Derivatives Analyst for Institutional Equity at Ashika Stock Broking, said. He believes the stock will begin its next bull run, potentially pushing it towards Rs 1,600-1,700 zone. It is important to note that critical support is observed at Rs 1,350-level, he said. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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