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Investors with a short-term perspective can buy the stock of Indo Count Industries at current levels. The stock has been in the limelight over last two days and has jumped 15.7 per cent. This rally has breached an immediate resistance at ₹95 and the 21-day moving average decisively.
Following a medium-term downtrend from this January high of 138, the stock recorded a 52-week low of ₹82.1 in late March and found support. Triggered by positive divergence in the daily relative strength index, the stock reversed direction and began to move higher. The daily RSI is charting higher in the neutral region towards the bullish zone and the weekly RSI has entered the neutral region from the bearish zone. There is an increase in volume in recent times.
Although the stock has a key resistance ahead at ₹100, the current bullish momentum has the potential to overcome the barrier and trend upwards. Near-term outlook is bullish for the stock. Traders with a short-term perspective can buy the stock with a stop-loss at ₹96. Short-term targets are ₹102.5 and ₹104.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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