The analyst is tracking price action around key resistance for potential short-term exhaustion.
Aditya Birla Capital may be gearing up for a long-term rally, but a near-term pause could be on the cards.
SEBI-registered analyst Rajneesh Shama flagged a "clean cup and handle breakout" on the weekly chart, with volume and structure aligning with classic bullish setups.
At the time of writing, Aditya Birla Capital shares were down 0.3% at ₹270.36.
However, the stock is now trading near a key resistance zone at ₹286.20, the upper boundary of a long-term ascending channel.
Weekly relative strength index (RSI) is hovering around 79, which is a level that historically signals short-term exhaustion.
“Whenever RSI crossed 78–80, a short-term pause or correction followed,” Sharma noted, adding that recent volume spikes resemble earlier setups where consolidation preceded further gains.
Sharma expects any pullback toward ₹250–₹240 to be a “textbook retest” offering dip-buying opportunities. A tight stop-loss below ₹238.90, the breakout point, is advised.
On the long-term front, Sharma sees potential for a sustained uptrend.
Based on the cup and handle depth of ₹216 and a breakout above ₹238.90, he projects a technical target around ₹455.10.
He also said the breakout aligns with the stock’s ongoing channel pattern, strengthening the bullish case.
“As long as price holds above ₹238.90, the structure supports a long-term move toward ₹450–₹460,” Sharma said, favoring a buy-on-dips strategy for positional traders.
The stock has risen 51% so far in 2025.
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