Chart Check: A breakout from cup & handle pattern makes this infra stock an attractive buy; may hit 52-week high in April

GMR Infrastructure, part of the transport infrastructure group, hit a fresh 52-week high after recording a breakout from a Cup & Handle pattern earlier in April 2023.

The stock hit a 52-week high of Rs 44.60 on 6th April 2023. The stock recorded a breakout from the Cup and Handle pattern on the weekly charts for the week ended 3 April 2023. The stock rose more than 10% in a month.

Short-term traders can look to buy the stock now or on dips for a possible target of Rs 50 in the next 3-6 months, suggest experts.

The stock did consolidate around Rs 37-40 levels since November 2022 which suggests that it has formed a strong base. Any dip could be used to go long in the stock.

The supertrend indicator triggered a buy on 3 April 2023 on the daily charts which is a positive sign for the bulls.

The Relative Strength Index (RSI) is at 65.4. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

In terms of price action, the stock is trading well above most of the short and long-term moving averages such as 5,10,30,50, 100 and 200-DMA on the daily charts.


The stock of GMR Infra has shown impressive resilience, consistently maintaining a level above Rs 34, a threshold that was breached for the first-time post June 2014.

“This sustained performance of GMR Infra stock has been observed since early October 2021, illustrating a significant strength despite the overall correction in the market,” Omkar Patil, Technical Research Associate at GEPL Capital, said.

“The stock in the latest week has given a breakout of the Cup & Handle pattern indicating the beginning of the trend to the upside,” he said.

“The RSI on the daily timeframe has started to move in sync with the prices reflecting rising momentum in the prices,” highlighted Patil.

“Going ahead, we expect the prices to move higher till Rs 55 level where the stop loss must be Rs 40 strictly on the closing basis,” he recommends.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)