Shares of DMart (listed as Avenue Supermarts) rose to their 52-week high on Wednesday after the operator of DMart, announced the opening of a new store in Bengaluru, taking the number of stores to 366. The stock rose 2.5% to a high of Rs 4831 on BSE. Market cap of the firm rose to Rs 3.11 lakh crore.
The retail stock saw a turnover of Rs 4.66 crore after 9,732 shares of the firm changed hands on Wednesday. Market cap of the firm climbed to Rs 3.12 lakh crore. The stock has a one-year beta of 0.2, indicating low volatility during the period.
In terms of technicals, the relative strength index (RSI) of DMart stock stands at 76.3, signaling the stock is trading in the overbought zone. Avenue Supermarts shares are trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
CLSA has initiated coverage on the retail stock with a target of Rs 5,107. It assigned a buy call to DMart shares. CLSA highlighted an addressable market exceeding Rs 50,000 crore, with less than 5 percent organised. CLSA said that private labels could drive the next phase of share gains.
Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "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 in the range of 800 points and is now trading above the cluster of moving averages levels of Rs 3800, which is strong support for the short term. 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.”