Avenue Supermarts, V-Mart, Trent: Strategies for retail sector stocks

The overall trend for most stocks in the retail segment looks promising from a medium-term perspective. Here are the key levels you need to keep a tab on for front-line stocks

Reliance Industries' retail arm - Reliance Retail Ventures (RRVL) - got its first equity investment of Rs 7,500 crore from global technology investment firm, Silver Lakes. The investment for a 1.75 per cent equity stake values the retail business at Rs 4.21 trillion ($57 billion).

Recently, RIL acquired Future Enterprise Limited's (FEL) consumer business for a purchase consideration of around Rs 24,713 crore. The acquisition, according to Moody's, will strengthen the retail footprint of India's largest organised retailer. The development also brought back focus on the listed players in the retail segment. 

 

Here's how frontline stocks from the sector look on the charts.

Avenue Supermarts Limited (DMART): Till this counter trades above the 50-day moving average (DMA) which is currently placed at Rs 2,194 on the closing basis, the upside bias should hold. On the higher side, once the stock scales above Rs 2,400 levels, a major breakout may see a the rally take Avenue Supermarts towards Rs 2,700 levels. CLICK HERE FOR THE CHART
 
Trent Limited (TRENT): The stock is holding on to the support of 200-DMA from a medium-term perspective. The range of Rs 580 to Rs 560 has seen accumulation and this should lead to a major bullish sentiment. The current support comes in at Rs 604, which is its 50-DMA. Once the counter manages to absorb the selling pressure around Rs 680, the upside rally may see the counter move towards Rs 710 and then Rs 723 levels. Traders should keep a trailing support of Rs 662 levels.  CLICK HERE FOR THE CHART
 
Future Retail Limited (FRETAIL): After declining for six sessions, the counter has hit the upper circuit on Thursday. The positive momentum continue and may take the stock higher if manages to breakout above Rs 125 levels on good volume.  CLICK HERE FOR THE CHART
 
V-Mart Retail Limited (V-MART): The weekly chart clearly demonstrates that the stock has been range-bound. On the higher sise, the stock is facing resistance at Rs 2,100, which is its 100-weekly moving average (WMA). On the downside, the price has held the support of 100-WMA, placed around Rs 1,800 levels on a closing basis. CLICK HERE FOR THE CHART
 
Shoppers Stop Limited (SHOPERSTOP): Till the stock holds above the 50-DMA placed at Rs 167.60 levels on a closing basis, it may continue to do well. Although the technical indicators are showing a bit of weakness, but moving averages are signalling strength. The volumes have remained subdued during the recent correction, which can be a cause for concern. CLICK HERE FOR THE CHART
 
Spencer's Retail Limited (SPENCERS): The medium-term support stays at Rs 70, which the counter has not been able to breach decisively. The recent downside saw buying. This reflects underlying strength and the fact that the stock may see buying come in on any decline. The overall trend indicates a rally towards Rs 110 levels. A major upside can be possible if the stock is able to cross Rs 88 levels on good volume. CLICK HERE FOR THE CHART