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The stock of Welspun Enterprises gained almost 5 per cent on Wednesday, accompanied with good volume. Taking a contrarian view investors with a short-term perspective can buy the stock at current levels. Following a sharp fall over the past three weeks, the stock recorded a 52-week low at ₹117 on September 21. However, taking support from this low, the stock began to rebound as the daily indicators hit the oversold territory.
There has been an increase in daily volume over the past one week. The daily relative strength has recovered from the oversold territory and is moving towards the neutral region. The weekly RSI has also recovered from the bearish zone and continue to feature in the neutral region. Moreover, the stock is recovering from the lower boundary of the Bollinger Bands that is also a positive sign from a short-term perspective.
Investors with a contrarian stance can buy the stock at current levels for short-term price targets of ₹141.5 and ₹144. Traders can place the stop-loss at ₹133.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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