Stop Loss: Rs 1,140
Target at Rs 1,400-1,440
MAXHEALTH has recently broken out of an Inverted Head and Shoulders pattern on the weekly chart, signaling the possibility of a strong bullish reversal. The breakout has been supported by significant volume, enhancing the credibility of the move. A decisive close above Rs 1240, backed by strong participation, will confirm the pattern and could pave the way for the next leg of the uptrend.
Technically, the stock is trading well above its 20, 50, 100, and 200-day EMAs, reflecting strength across all key timeframes. The RSI currently stands at 65.57 on the daily chart and is trending upward, indicating building momentum without being overbought — a sign of healthy strength. This alignment of price action, volume, and momentum supports the bullish outlook.
From a trading point of view, a buy-on-dips strategy near the Rs 1180 support zone could provide a favorable entry opportunity. For risk management, a positional stop-loss at Rs 1140 is advised. On the upside, once the breakout sustains above Rs 1240, the stock has the potential to rally towards Rs 1400 and Rs 1440, offering a compelling risk-reward setup for positional traders.
(Mandar Bhojane, Equity Research Analyst)
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