The stock has made higher highs and higher lows over the past 3 weeks. It has increased by around 5% during the same period.
Experts see the momentum to continue as the recent bounce back could help the stock take out the recent peak of Rs 417 recorded on September 26 on the daily charts.
Short-term traders who are willing to take risks can look at buying the stock now or at a case for a possible target above Rs 500 levels in the next 4-8 weeks, experts suggest.
The stock is showing signs of strength and the Stochastic Oscillator, a momentum indicator, gave a new buy signal, signifying strength.
On the price front, the stock is trading above most of the short-term moving averages such as the 5,10,20 and 30-DMA but below the 50,100 and 200-DMA.
The Relative Strength Index (RSI) is at 52.2. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed.
“This stock had a strong rally from Rs 63.50 levels to Rs 536 levels post-Covid, correcting back to Rs 366 levels where it found support. It can be observed that the stock has consolidated over the last three quarters and is likely to to resume its next move upwards, said Sujit Deodhar, Head Technical Analyst, Wellworth Share & Stock Broking.
On weekly chart, Bollinger Mid band (100 Bollinger period with 2 standard deviations) is placed at Rs 380 levels, which will act as support for this stock.
“Stochastic Oscillator, which is a momentum indicator, exhibits a new buy signal by exiting the oversold zone,” Deodhar added.
“At current levels of Rs 413 and on fall to Rs 380 levels, the stock offers a good risk-reward ratio to enter long positions with strict stop loss below Rs 360 levels on a daily closing basis,” he recommended.
He added that two targets of Rs 545 & Rs 635 levels can be placed for profit booking in this stock with a storage period of next 4-8 weeks.
(Disclaimer: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of Economic Times)