Havells India (₹499.4)

The short-term outlook for the stock of Havells India is bullish. The stock surged 3 per cent on Tuesday, breaking above a key near-term resistances at ₹490 — the 61.8 per cent Fibonacci retracement level and ₹492. It has closed on a strong note. These resistances were capping the upside in the stock all through last week. The levels of ₹492 and ₹490 will now act as a good support for the stock. Intermediate dips to these levels may find fresh buyers coming into the market.

The next significant support is at ₹480. As long as the stock trades above ₹490, a rise to ₹520 and ₹525 is likely in the coming sessions. Short-term traders can go long at current levels. Stop-loss can be placed at ₹489 for the target of ₹520. Accumulate longs on dips near ₹495. Revise the stop-loss higher to ₹505 as soon as the stock moves up to ₹510.

The short-term outlook for the stock will turn negative only if it declines below ₹480 decisively. But such a strong fall looks less likely at the moment.

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

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