Technical Analysis

Essel Propack (₹117.1): Buy

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

Investors with a short-term horizon can consider buying the stock of Essel Propack at current levels. Following a medium-term downtrend, the stock found support at ₹85 in late October. This base level limited the downside in November as well and subsequently the stock began to move higher. Since then, the stock has been in a medium-term uptrend. Short-term trend is also up.

In February, the stock conclusively breached its moving average compression (21-, 50- and 200-DMAs) at around ₹109 and has been sustaining above these averages. On Thursday, the stock surged 7 per cent accompanied by above average volume, breaching an immediate resistance at ₹115. This rally has strengthened the short-term uptrend.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Moreover, the daily and weekly price rate of change indicators hovers in the positive terrain implying buying interest.

The stock can extend the ongoing rally and reach the price targets of ₹122 and ₹125 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹114.5.

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


Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.

  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.

  • Ad free experience

    Experience cleaner site with zero ads and faster load times.

  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor