Piramal Enterprises| VCP traits | Breakout on volume

95
📈 PEL | Piramal Enterprises Ltd

Multi-month base | VCP traits | Breakout on volume watch

🔍 Technical Highlights:

Volume spurt: 5x relative to recent sessions – clear institutional interest 🧠

Bullish engulfing candle on 7 May 2025, signaling a strong reversal attempt

Closed above 200 DMA, trading above 50 DMA, and just above 30 WMA – early signs of trend re-alignment

Price is forming a VCP-like structure within a Stage 1 base

Breakout is aligning with a Higher High–Higher Low (HH–HL) structure

Took support at a rising trendline that’s been respected since April 2023

⚠️ Key Risk Considerations:

Fundamentals are weak – poor ROE & ROCE, and RSI is unimpressive

Broader market is not supportive — Nifty 500 is still below 200 DMA

This may be an early breakout attempt — confirmation is everything

No clean follow-up yet post breakout day – wait for continuation

🧭 Why Watch This?

Despite fundamental weaknesses, technicals are improving rapidly:

Volume is stepping up

Price is testing long-term moving averages

Structure is getting tighter (VCP traits visible)

A clean breakout and follow-through above ₹1,075–₹1,140 could unlock Stage 2 potential

🎯 Trade Levels:

Entry: Above ₹1,075.6 (confirmation required)

SL (Closing Basis): ₹895.2

Positional Target 1: ₹1,276

Positional Target 2: ₹1,658

ATH Review Zone: ₹1,761

💰 Risk–Reward

Risk = ₹1,075.6 – ₹895.2 = ₹180.4

Reward to T1 = ₹1,276 – ₹1,075.6 = ₹200.4 → R:R = 1 : 1.11

Reward to T2 = ₹1,658 – ₹1,075.6 = ₹582.4 → R:R = 1 : 3.23

🛡️ Trader's Note

Position sizing is not optional — it's your only protection.
This is a setup driven by volume, structure, and levels — not by fundamentals.
If this breakout holds, momentum traders may pile in — but don’t front-run it blindly.

📌 Quarterly results are around the corner — trade with caution as earnings volatility can invalidate technicals.

📌 If price reaches ATH, review for new risk-reward alignment and partial booking.

📜 Disclaimer: This is a technical perspective, not investment advice. For educational purposes only. Trade safe, trade smart.

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