Investors with a short-term perspective can buy the stock of KRBL at current levels. The stock has been in an intermediate-term uptrend since taking support at ₹375 in late June 2017. However, the stock encountered a key resistance at around ₹670 last November and started to decline. After a corrective medium-term downtrend, the stock found support at ₹550 during previous week and changed direction.
On Wednesday, the stock decisively breached a key immediate resistance at ₹600 by gaining 6.4 per cent. Moreover, this rally has also conclusively breached the 21- and 50-day moving averages poised at ₹610. With this rally the stock’s corrective downtrend appears to have ended and the stock seems to be resumed its intermediate-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also re-entered this zone.
The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹660 and ₹675 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹625.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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