Radico Khaitan: Trendline Breakout in Focus

Radico Khaitan is showing signs of a potential bullish reversal on the daily chart, with the stock approaching a breakout from a downward-sloping trendline. The latest session saw the stock close at ₹4,550, gaining 3.06%. The RSI has recovered from around 39 to nearly 55, indicating improving bullish momentum. The MACD line has crossed above the signal line, while the red histogram bars have contracted and momentum is turning positive. The stock is trading above its key moving averages, including the 10, 20, 50, 100 and 200-day averages, reflecting a constructive broader trend. The recent price action has also recovered strongly from its October lows and nearly engulfed the previous week's candle, suggesting renewed buying interest. Technical View A decisive breakout above the falling trendline and recent swing highs could strengthen the bullish setup. The ₹4,600–₹4,650 zone is worth monitoring for breakout confirmation, while ₹4,450–₹4,400 may act as an immediate support area. A sustained move above resistance could open the possibility of further upside, whereas rejection near resistance may lead to consolidation. My View The technical structure is improving, supported by RSI recovery, a bullish MACD crossover and price trading above major moving averages. However, a confirmed trendline breakout with sustained buying participation is essential before concluding that the next upward leg has begun. Disclosure: Neither I nor my family members hold any shares of Karur Vysya Bank as of the date of publication.