Investors with a short-term perspective can consider buying the stock of Granules India at current levels or in corrective declines. The stock found a key long-term support in the band between ₹100 and ₹105 in early August and reversed higher. However, this rally failed to move above the resistance level of ₹130 in mid-September and the stock subsequently fell back again.

After taking support at ₹110, the stock resumed its up move once again in early October. Strong short-term rally backed with good volume has helped the stock to emphatically break above the key immediate resistance at ₹130 last week. Further, the stock has extended its up move witnessing bullish momentum and surged 3.3 per cent with good volume on Monday. The stock trades well above its 50- and 200-day moving averages. There has been an increase in daily volume over the past two weeks.

The daily relative strength index feature in the bullish zone and the weekly RSI is on the brink of entering this zone from the neutral region. Moreover, the daily as well as weekly price rate of change indicators features in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price target of ₹147 and ₹150 levels. Traders with a short-term view can buy in dips with a stop-loss at ₹137.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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