IndiaMART InterMESH Ltd (NS:) is the first and largest B2B digital marketplace in India. The group began in 1996 when Dinesh Agarwal and Brijesh Agrawal founded IndiaMART.com, a business-to-business portal to connect Indian manufacturers with buyers. The stock is trading at a discount of 11.5% to its 52-week high level. The 52-week high and low range is Rs 9,952 – Rs 4,515.
One week time frame: (Chart 1)
It would help if you observed that IndiaMART stock has made a Cup and Handle pattern on a weekly time frame. Once the scrip crosses the Rs 8,872 level decisively supported by increased volumes, a break out from the pattern will most likely happen. Relative Strength Index (or RSI) is above 60, and the Moving Average Convergence Divergence (or MACD) line has crossed the signal line below, and it points to positive momentum on the stock. Also, you should note that the 50-day EMA line has acted as strong support for the share on a weekly time frame. Long-term investors should enter once the stock crosses and stays above Rs 8,872, and they should maintain the stop loss at Rs 7,080 on a weekly closing basis.
One day time frame: (Chart 2)
You should note that IIL share has broken out of a Bullish Flag pattern on a daily time frame today. Heavy volumes support the breakout, and RSI is above 60, denoting positive momentum on the scrip. We can also see that the share broke out after consolidating for three months, from June 2021 until the start of September 2021. Since then, it has ably taken support on the 50-day EMA line. Positional traders should enter at current levels, and they should maintain the stop loss at Rs 7,972 (previous swing low) on a daily closing basis.
We anticipate the IndiaMART stock to maintain positive bias and move higher going forward. Short-term traders should take a position on a pullback and keep a strict stop loss of Rs 8,429 on a daily closing basis.