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The stock hit a 52-week high of Rs 2420 on 27 April 2022, but then the trend turned sideways. The recent price action pushed the stock above the 50-DMA which is a positive sign.
Experts suggest that short-term traders can buy the stock now or on downside for a possible target of Rs 2800, which would result in new 52-week highs in the next 6 months.
The stock with a market capitalization of over Rs 2.5 lakh crore made a double bottom above Rs 1500 in February and March 2022, from where it saw a sharp jump.
The stock can be bought now or 2085-1979-1876 and 1817 at a fall of Rs. The first major support for the stock would come above Rs 1900 level – a swing low on 26 May 2022.
The Relative Strength Index (RSI) as of 4 July 2022 is placed at 56.3. RSI below 30 is considered oversold and above 70 is considered overbought. MACD is above its center and signal line is a bullish indicator, trendline data shown.
On the price front, it is trading above all important short and long term moving averages like 5,10,20,30,50,100 and 200-DMA on the daily chart which is a positive sign for the bulls.
The share price rose from Rs 141 (June 2020) to Rs 1718 (June 21), forming a series of high bottoms and high tops.
During the move, the stock made a consistent bounce back supporting the important averages and the Supertrend indicator on the weekly chart is in a positive mode.
However, marginal profit-booking was witnessed which pushed the stock towards Rs 1,345 in October 2021.
Bharat Gala, President – Technical Research
Securities Ltd. said.
“Vortex, PVT, and on Equilibrium” volume indicator Suggest buying interest in the stock. Possible targets are 2800-3200-3600.”
A Vortex indicator is used for trend reversal and trend confirmation, while a PVT indicator or Price Volume Trend Indicator is a momentum-based indicator used to measure money flow.
“If the stock price corrects to the downside then the buying level is 2085-1979-1876-1817.
The stop loss to be seen in the trade is 1720,” recommends Gala.
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent the views of The Economic Times)
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