Investors with a short-term perspective can buy the stock of Bal Pharma at current levels. The stock found support at around ₹70 in late May 2018, following a medium-term downtrend from the January high of ₹128. Significant long-term support at ₹70 cushioned the stock once again in early June. The stock subsequently changed direction and began to move higher on the back of buying interest.
While trending up, the stock decisively breached its 21- and 50-day moving average resistances and currently trades well above them. Moreover, the stock gained 8 per cent accompanied with an above average volume on Wednesday, conclusively breaking the long-term resistance level of ₹86.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive terrain implying buying interest.
The short-term outlook is bullish for the stock. It can continue to trend upwards and knock the price targets of ₹95 and ₹97 in the short term. Traders can buy the stock with a stop-loss at ₹88.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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