Welspun Corp (₹142)

The stock of Welspun Corp gained 4.5 per cent with above average volume on Wednesday, breaching a key immediate resistance in the band between ₹138 and ₹140. With this rally, the stock appears to have resumed its short-term uptrend that has been in placed since early December low of ₹124. Moreover, the stock has also conclusively surpassed its 21-DMA on Tuesday and trades well above 50-DMA as well.

The long-term trend has been up since November 2016 low at ₹56 and this uptrend continues to be intact for the stock. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this bullish zone from the neutral region. Both the daily as well as weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook is bullish for Welspun Corp. The stock can extend its rally and hit the price targets of ₹148 and ₹151 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹139.

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

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