Comments
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.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.