Technical Analysis

Birla Corporation (₹570.1): Buy

Yoganand D BL Research Bureau | Updated on May 15, 2019 Published on May 16, 2019

Investors with a short-term view can buy the stock of Birla Corporation at current levels.

After recording a 52-week low at ₹440 in early February 2019, the stock has been in a budding medium-term uptrend. While trending up, the stock had decisively breached a key resistance at ₹500 in early March and this level subsequently turned into a key support level.

In early May, the stock took support at around ₹500 and resumed the uptrend. On Wednesday, the stock gained 2.6 per cent accompanied by above average volume. It breached a key resistance at ₹550 on the day.

The stock trades well above the 21- and 50-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. Both the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock. Targets are ₹590 and ₹600. Traders can buy the stock with a stop-loss at ₹560.

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

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