The outlook for the stock of Future Retail is bullish. The stock surged 3.3 per cent on Monday, breaching decisively the key resistance level of ₹560. The stock has been broadly range-bound between ₹450 and ₹650 over the last several months. Within this range it made a low of ₹453 in mid-August and has reversed sharply higher from there thereby keeping the sideways move intact.
The strong close above ₹560 on Monday has strengthened the current up move. It has also increased the possibility of the stock revisiting ₹600 and ₹650 levels in the coming weeks. Near-term support is at ₹560. Intermediate dips to this level is likely to find fresh buying interest coming into the stock.
A rally to ₹595 and ₹600 is likely in the near term. A strong break and a decisive close above ₹600 will then pave way for a revisit of ₹630 and higher levels.
Short-term traders can go long and also accumulate at ₹565. Stop-loss can be placed at ₹535 for a target of ₹620. Revise the stop-loss higher to ₹580 as soon as the stock moves up to ₹590.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)