Globus Spirits (₹138.8): Buy

Investors with a short-term horizon can buy the stock of Globus Spirits at current levels. Recording a 52-week high at ₹178 in early January this year, the stock changed direction and was on a medium-term downtrend until it found support at ₹114 in late March. However, the stock bounced up taking support from this level backed by positive divergence in the daily indicators.

Following a corrective near-term decline, the stock found support at ₹127 last week and began to move higher. The stock decisively breached its 50-day moving average and a vital resistance level of ₹135 on Tuesday by gaining 4 per cent with above average volume.

The daily and weekly relative strength indices are charting higher in the neutral region towards the bullish zone. Both the daily as well as weekly price rate of change indicators have entered the positive terrain implying buying interest.

The stock is witnessing buying interest and its short-term outlook is bullish. It can extend its up move and reach the price targets of ₹144.5 and ₹147.5 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹135.5.

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

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