Avenue Supermarts Gains 5.48%: 3 Key Factors Driving This Week’s Momentum

2 February 2026: Weak Market Start, Stock Holds Up Better

The week began with Avenue Supermarts Ltd opening at Rs.3,675.95, down 0.32% from the previous close, while the Sensex declined 1.03% to 35,814.09. Despite the broader market weakness, the stock’s relatively smaller loss indicated early resilience. Trading volume was modest at 4,425 shares, reflecting cautious investor sentiment amid a volatile environment.

3 February 2026: Strong Intraday Rally Lifts Stock Above Sector and Market

On 3 February, Avenue Supermarts Ltd surged 2.73% to close at Rs.3,776.20, hitting an intraday high of Rs.3,779.9, a 3.24% gain from the previous close. This rally outpaced the diversified retail sector’s 2.47% gain and the Sensex’s 2.63% rise to 36,755.96. The stock’s outperformance was supported by strong buying interest, with volume spiking to 21,182 shares. Technical indicators showed the stock trading above its 5-day and 20-day moving averages, signalling short-term positive momentum. This marked the second consecutive day of gains, accumulating a 4.6% return over two sessions, highlighting renewed investor confidence despite mixed market signals.

4 February 2026: Continued Gains Amid Moderate Volume

The positive momentum extended into 4 February, with the stock closing at Rs.3,823.95, up 1.26% on the day. The Sensex also advanced but at a slower pace, rising 0.37% to 36,890.21. Volume moderated to 8,885 shares, suggesting a consolidation phase following the previous day’s surge. The stock remained above its short-term moving averages, reinforcing the bullish trend in the near term.

5 February 2026: Intraday High and Technical Momentum Shift

Avenue Supermarts Ltd recorded its highest intraday price of the week at Rs.3,932.2 on 5 February, closing at Rs.3,937.75, a 2.98% gain for the day. This marked the fourth consecutive day of gains, accumulating a 9.12% return over this period. The stock outperformed the diversified retail sector’s 2.38% gain and the Sensex’s 0.62% decline, which closed at 36,695.11. Volume surged to 17,913 shares, reflecting strong buying interest.

However, technical analysis revealed a nuanced picture. Despite the strong price action, the stock’s momentum shifted from bearish to mildly bearish, with key indicators such as the MACD remaining negative on weekly and monthly timeframes. The daily moving averages were mildly bearish, and the Relative Strength Index hovered near neutral levels, indicating a consolidation phase. On-Balance Volume trends were also mildly bearish, suggesting volume did not fully confirm the price rally. These mixed signals imply that while short-term momentum is positive, longer-term resistance and caution remain relevant.

6 February 2026: Week Closes Slightly Lower but Maintains Weekly Gains

The stock closed the week at Rs.3,889.70, down 1.22% on the day, with volume rising to 23,549 shares. The Sensex ended marginally higher by 0.10% at 36,730.20. Despite the slight daily decline, Avenue Supermarts Ltd finished the week with a robust 5.48% gain, outperforming the Sensex’s 1.51% rise. The stock’s price remains comfortably above its short-term moving averages but below longer-term resistance levels, including the 100-day and 200-day averages. This suggests that while the immediate trend is positive, investors should monitor for confirmation of sustained momentum.

Key Takeaways

Positive Signals: Avenue Supermarts Ltd demonstrated strong short-term momentum with a 5.48% weekly gain, significantly outperforming the Sensex’s 1.51%. The stock’s intraday highs on 3 and 5 February reflected robust buying interest and sectoral strength. Trading volumes increased notably on rally days, supporting the price advances. The stock’s position above its 5-day, 20-day, and 50-day moving averages signals short- to medium-term strength.

Cautionary Signals: Despite recent gains, technical momentum indicators such as the MACD remain bearish on longer timeframes, and moving averages beyond 50 days continue to act as resistance. The Relative Strength Index remains neutral, indicating no clear directional bias. On-Balance Volume trends are mildly bearish, suggesting volume does not fully confirm price rallies. The MarketsMOJO Mojo Grade remains at ‘Sell’ with a score of 44.0, reflecting a cautious fundamental outlook. Investors should be mindful of these mixed signals and monitor for confirmation of sustained upward momentum.

Conclusion

Avenue Supermarts Ltd’s performance this week was marked by strong rallies and notable outperformance relative to the Sensex, driven by positive sector trends and short-term technical strength. However, the stock’s technical momentum remains mixed, with longer-term indicators signalling caution. The combination of robust intraday gains and subdued volume confirmation suggests a consolidation phase amid a complex market backdrop. Investors should watch key technical levels and momentum indicators closely in the coming weeks to assess whether the current positive trend can be sustained or if resistance will prevail.

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