Welspun Enterprises (₹153): Buy

Investors with a short-term view can buy the stock of Welspun Enterprises at current levels. On Monday, the stock surged 7.5 per cent with an above average volume. Following a medium-term downtrend from the January peak of ₹198, the stock found support at ₹140 in late March. Since then, the stock has been moving sideways in a narrow trading range with a positive bias. Key long-term support at ₹140 has been providing base for the stock since March.

The stock has breached its 21-day moving average on Monday and is poised to surpass its 50- and 200-day moving average resistances as well. The daily relative strength index is moving higher in the neutral region towards the bullish zone. The daily price rate of change indicator has entered the positive territory implying buying interest.

The stock has the potential to breach its immediate resistance at ₹155 and continue to trend upwards. Near-term targets are ₹159.5 and ₹162.5. Traders with a high-risk appetite can buy the stock with a stop-loss at ₹149.5.

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

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