ABFRL Looks Attractive After Demerger: SEBI RA Krishna Pathak Sees Breakout Potential Above ₹94

Following its recent demerger, SEBI-registered analyst Krishna Pathak considers Aditya Birla Fashion and Retail Limited (ABFRL) a promising long-term investment.

At the time of writing this copy, ABFRL shares traded over 2% higher. 

After the recent separation of its Madura Fashion & Lifestyle division, the company comprises two publicly traded entities: ABFRL and Aditya Birla Lifestyle Brands (ABLBL). 

As of May 22, shareholders of ABFRL will receive one ABLBL share for each share they hold.

From a technical perspective, ABFRL is consolidating, with the 9-week Exponential Moving Average at ₹90 acting as current resistance and immediate resistance seen near ₹94. 

Pathak identified strong support around ₹60, with the ₹73–₹77 range considered an attractive accumulation zone. 

He also highlighted that the stochastic Relative Strength Index is neutral, which suggests the potential for a short-term reversal and rally. 

Pathak sees a breakout above ₹94 opening the door to targets of ₹110–₹120 in the near term, with longer-term projections set at ₹145 and ₹197. 

And on the flip side, a breakdown below ₹60 would invalidate the bullish outlook and indicate further downside risk.

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