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Avenue Supermarts Ltd

BUY 30 JUN 4200 CALL Entry Range 75 - 81 Target 140 Stop Loss 45

Rationale

1. DMART has exhibited a strong rebound after finding support near its long-term 200-WEMA, highlighting the presence of significant buying interest at lower levels. The stock has defended this crucial support zone effectively, indicating a potential exhaustion of the recent corrective phase.

2. On the daily chart, the stock has formed a bullish reversal pattern near the recent swing lows and has managed to close above its short-term moving averages. suggests improving sentiment and the possibility of a fresh uptrend.

3. Momentum indicators are also supporting the positive outlook. The RSI has witnessed a recovery from lower levels and is displaying a bullish divergence, where momentum strengthened despite price weakness, often considered an early sign of trend reversal. Sustained trading above the 4150-4180 zone could trigger further upside towards 4400 and then 4600 levels in the near term

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