Todays Pick

Wockhardt (₹753.6)

Gurumurthy K BL Research Bureau | Updated on January 09, 2018 Published on December 11, 2017

The outlook for the stock of Wockhardt is bullish. The stock surged 7 per cent with strong volumes on Monday. This rally on has taken the stock well above a key near-term resistance at ₹740. This level of ₹740 will now serve as a good support. Intermediate dips to this support level may find fresh buyers coming into the market. Also there is a cup and handle pattern formation visible on the charts. This is a bullish reversal pattern. The sharp rise on Monday is giving an initial sign of confirmation of this pattern.

A rally to ₹780 or ₹785 is likely in the near-term. Further break above ₹785 will increase the likelihood of the upmove extending to ₹800 or even ₹825 thereafter.

Short-term traders can go long and accumulate on dips at ₹745. Stop-loss can be placed at ₹735 for the target of ₹785. Revise the stop-loss higher to ₹760 as soon as the stock moves up to ₹770. The bullish outlook will get negated if the stock declines below ₹740. In such a scenario, the stock can fall to ₹710 or even lower levels thereafter.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get

This article is closed for comments.
Please Email the Editor