Relaxo Footwears Shares Surge 18%, Here's What Sparked The Sudden Rally?

Mumbai: Relaxo Footwears shares surged nearly 18percent on Friday, snapping a three-session losing streak as strong buying emerged around an important technical support level.

The stock was trading at Rs 431.10 on the NSE at 1:21 pm, up Rs 64.45, or 17.58percent, from its previous close of Rs 366.65. It touched an intraday high of Rs 437.40 after opening at Rs 368.

The rally lifted the footwear company’s market capitalisation to around Rs 10,720 crore, adding approximately Rs 1,600 crore in a single session.

Why Shares Surged?

The sharp rise was mainly driven by buying interest near the stock’s 200-day exponential moving average, a technical level closely tracked by traders. Healthy trading volumes provided further support to the rally.

According to market experts, Relaxo witnessed strong buying near its 200-day EMA. The stock continues to form a “higher high–higher low” pattern and is trading above its key moving averages, indicating a strong underlying short-term trend.

Momentum indicators have also improved. The Relative Strength Index has crossed the 60 level, signalling renewed bullish momentum. The widening difference between the DI+ and DI- indicators suggests buyers are currently in control.

Key Levels Ahead

Experts said some profit booking or sideways consolidation cannot be ruled out following the steep single-day rise.

However, the overall technical trend remains positive as long as the stock stays above the Rs 365–Rs 360 support zone. Holding above this range could help the recovery extend further.

Investors considering fresh positions may closely watch whether the stock sustains its gains and continues to receive support from healthy trading volumes.

Strong Recovery

Relaxo shares touched a 52-week high of Rs 526 in September last year before falling to a 52-week low of Rs 236.50 in March.

At the latest price of Rs 431.10, the stock has recovered more than 82percent from its March low. However, it remains around 18percent below its 52-week high, indicating that the longer-term recovery still has some ground to cover.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Consult a qualified financial adviser before investing.