Technical Analysis

Dabur India (₹418.6): Buy

Gurumurthy K BL Research Bureau | Updated on November 26, 2018 Published on November 26, 2018

The outlook for the stock of Dabur India is bullish. The stock surged 4.7 per cent on Monday to close on a strong note. The up move on Monday has taken the stock decisively above the key resistance levels of ₹408 and ₹413. These levels will now act as a strong support for the stock. As such, any intermediate dips in the coming days is likely to find fresh buyers in the ₹413-408 region.

The indicators on the charts are also positive signalling that the downside in the near-term could be limited. Immediate resistances are at ₹420 and then in the ₹423-425 region. A strong break above ₹425 will boost the momentum and will take the stock higher to ₹445 and ₹450 in the coming days.

Traders can go long at current levels and also accumulate on dips at ₹415 and ₹410. Stop-loss can be placed at ₹402 for the target of ₹450. Revise the stop-loss higher to ₹425 as soon as the stock moves up to ₹430. The bullish outlook will get negated only if the stock declines decisively below ₹408. The ensuing target is ₹395. But such a strong fall looks unlikely at the moment.

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

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