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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