The stock bounced back after hitting a low of Rs 190 on 20 June 2022. It closed at Rs 247 on 6 September 2022 which translates into an upside of 30 per cent. However, it is still trading 17 per cent below its 52-week high of Rs 298 recorded on 7 April 2022.
Short-term traders can look to buy or accumulate the stock now or on dips for a possible target of Rs 277, suggest experts.
The stock faced resistance around Rs 243 levels since May 2022. It retested Rs 240 levels thrice before it broke out of the range on 6 September 2022.
On the price front, the stock recently reclaimed its long-term moving average of 200-DMA on 30th August which augers well for the bulls. It is now trading above 5,10,30,50,100 and 200-DMA.
The relative strength index (RSI) RSI is 66.4. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“The stock has indicated a clear breakout above the Rs 242 zone with a positive bullish candle to strengthen the trend and anticipate for the continuation of the momentum further upward in the coming days,” Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher, said.
“The RSI indicator is well placed and is on the rise indicating a trend reversal signalling a buy and has immense potential witnessed,” she said.
“With the chart looking attractive, we suggest traders to buy and accumulate the stock with an upside target of Rs 277 in next 3-4 weeks keeping the stop loss of Rs 232,” recommends Parekh.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)