Datamatics Global Services — Base Formation with Momentum Recovery

1️⃣ Price Structure: After a sharp rally and subsequent correction, price is stabilizing above the 0.618–0.5 Fibonacci retracement zone, indicating base-building rather than trend breakdown. The recent bounce suggests demand returning from lower levels. 2️⃣ Trendlines & Structure: The long-term uptrend (green rising trendline) remains intact. Price has recently reclaimed short-term moving averages and is attempting to move away from the lower structure, signaling a potential trend transition from correction to consolidation. 3️⃣ Key Levels to Track: • ₹780–790: Immediate resistance zone and short-term supply. • ₹840–860: Major resistance aligned with Fib 0.5 zone; breakout here can change structure. • ₹720–700: Strong demand zone and prior accumulation area. • ₹650: Structural support; loss of this weakens the bullish case. 4️⃣ Momentum & RSI: RSI is forming higher lows and has moved back above the 50 mark — a classic sign of improving momentum. This bullish divergence hints that downside momentum has already exhausted. 5️⃣ Volume Insight: Recent upside candles are supported by expanding volume, indicating genuine participation, not a weak dead-cat bounce. 🧠 Big Picture: As long as price holds above ₹700, the structure favors consolidation-to-upside bias. A sustained move above ₹860 can open the path toward previous highs. 📢 Educational & technical analysis only. Not a buy/sell recommendation. — Rajneesh Sharma, SEBI Registered Research Analyst (INH000020332)