Carborundum Universal (₹310.3)

Investors with a short-term perspective can consider buying the stock of Carborundum Universal at current levels. On Monday, the stock emphatically breached a key intermediate-term resistance level of ₹300 by gaining 5 per cent with good volume. Since encountering the key resistance at ₹300 in early April, the stock had been testing it for almost six weeks and eventually breached it. Last session, the stock recorded a new high at ₹313 levels.

With the recent rally, the stock appears to have resumed its medium-term uptrend that has been in place since taking support at ₹240 in December 2016. Short-term is also up for the stock. It trades well above its 21 and 50-day moving averages. The daily relative strength index has re-entered the bullish zone from the neutral region. The weekly RSI continues to feature in the bullish zone. Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish for Carborundum Universal. Traders with short-term perspective can buy the stock with a stop-loss at ₹303. Targets are ₹323 and ₹330 levels.

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

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