Edelweiss Financial Services (₹205.7)

The outlook for the stock of Edelweiss Financial Services is bullish. The stock surged 3.2 per cent on Wednesday breaking above the key resistances at ₹202 and ₹204. This rally also signals the end of the sideways consolidation phase that was in place since June. Moreover, this also suggests that the long-term uptrend is intact and slowly gaining momentum. The levels of ₹202 and ₹204 may now act as a good near-term support for the stock. Intraday dips to these levels may find fresh buyers coming into the market.

A rise to ₹213 and ₹215 is likely in the coming days. Short-term traders can go long. Stop-loss can be placed at ₹201 for the target of ₹213. Accumulate on dips near ₹203. Revise the stop-loss higher to ₹208 as soon as the stock moves up to ₹210. The level of ₹196 is a key short-term support below ₹202. The bullish outlook will get negated only if it declines below this support. The ensuing targets on such a fall are ₹190 and ₹185. However, such a strong fall looks less likely as the stock formed a strong base around ₹200 over the last one week.

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

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