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The stock of Welspun Corp gained 3.6 per cent with above average volume on Thursday. Since taking support at ₹56 in November 2016, the stock has been in an intermediate-term uptrend. Following a corrective decline in early August, the stock found support at around ₹105 and resumed its uptrend. The stock has been in a medium-term uptrend since early August. Short-term trend is also up for the stock. It trades well above its 21- and 50-day moving averages.
There has been an increase in daily volume over the last two trading sessions. With the 3.6 per cent rally on Thursday, the stock has breached a key resistance at ₹140 which was limiting the upside over last two months. The daily relative strength index has entered the bullish zone from the neutral region. Moreover, the daily as well as weekly price rate of change indicaotrs features in the positive territory implying buying interest.
The stock appears to have resumed its intermediate-term uptrend. Traders with a short-term perspective can buy the stock with a stop-loss at ₹138.5. Short-term targets are ₹148 and ₹151.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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