Patanjali Breakout: Stock Gains On Bonus Share Approval, SEBI RA Sees Potential Retest Of ₹2,000

Technical indicators are backed by strong fundamentals due to the FMCG recovery

Patanjali Foods has confirmed a bullish breakout on the daily chart, backed by a significant spike in volume. The shares closed 2.2% higher on Thursday, after its board approved a 2:1 bonus share issue.

Patanjali shares have rallied 13% in the last five sessions.

Technically, the stock has decisively closed above both the Ichimoku Cloud and the upper Bollinger Band resistance, signaling renewed buying interest, according to SEBI-registered analyst Vijay Kumar Gupta.

The price structure has flipped from consolidation to an uptrend, with a clear higher low followed by a breakout candle, Gupta added. The Ichimoku setup has become completely bullish, with price action well above the Tenkan, Kijun, and the cloud.

Volume has surged to its highest daily level in over six months, while the commodity channel index (CCI) has reached an extremely overbought level of 317.33, indicating strong momentum, although short-term dips are possible.

The on-balance volume (OBV) has also shot up sharply, confirming smart money inflow. The analyst sees immediate support around ₹1,750 and resistance in the ₹1,940 - ₹2,000 zone. A breakout past ₹1,950 could open the door to retest the psychological ₹2,000 level.

On the fundamental side, investor sentiment is improving amid signs of FMCG margin recovery and better inventory management in Q1. Speculation about a potential stake sale or restructuring is also fueling the rally, the analyst said.

Pullbacks near ₹1,780 - ₹1,800 may offer low-risk re-entry opportunities, with a stop-loss around ₹1,745, he added.

Retail sentiment remained ‘bullish’ on Stocktwits, amid high message volumes.

The stock has gained nearly 8% year-to-date.