Technical Analysis

DB Corp (₹277.3): Buy

Gurumurthy K BL Research Bureau | Updated on July 09, 2018 Published on July 09, 2018

The outlook for the stock of D B Corp is bullish. The stock opened with a wide gap on Monday and has closed on a strong note by surging over 6 per cent. The strong up-move on Monday marks the end of the two-month long sideways consolidation. Cluster of supports are poised in between ₹270 and ₹265. Intermediate dips to this support region is likely to find fresh buying interest coming into the stock.

A rally to ₹292 is likely in the near term. Inability to break above ₹292 can trigger a pull-back move to ₹280 or ₹275. But a strong break above ₹292 will then pave way for a fresh rally to ₹310 or even ₹320 over the short-term. Traders with a short-term perspective can go long at current levels and on dips at ₹273. Stop-loss can be placed at ₹267 for the target of ₹305. Revise the stop-loss higher to ₹283 as soon as the stock moves up to ₹286. The outlook will turn negative only if the stock declines decisively below ₹265. The next targets are ₹250 and ₹245. But such a sharp 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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