Redington (I) — ₹135.7

The outlook for the stock of Redington (I) is turning bullish. The stock surged about 7 per cent on Thursday breaking above the key 21-day moving average resistance at ₹133. The stock was in a corrective fall since June from a high of ₹155.3. This downmove found strong support around ₹125 in the last week of June.

After consolidating around this support for more than a week, the strong surge on Thursday is now signalling the end of the corrective fall. Immediate support is at ₹133 which is likely to limit the downside. Dips to this support may find fresh buyers coming into the market. A rise to ₹143 is likely in the near-term. Further break above ₹143 will increase the likelihood of the upmove extending to ₹150 or even higher levels thereafter. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹131 for the target of ₹143. Revise the stop-loss higher to ₹138 as soon as the stock moves up to ₹141.

The bullish outlook will get negative if the stock declines below ₹133 decisively. Such a fall will increase the possibility of the stock revisiting ₹125 levels thereafter.

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

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