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Investors with a short-term perspective can buy the stock of Walchandnagar Industries at current levels.
Following a medium-term downtrend from the January peak of ₹267, the stock found support in the long-term base zone between ₹130 and ₹135 in early June. Triggered by positive divergence in the daily price rate of change and moving average convergence divergence indicator, the stock changed direction in early June. Since then, the stock has been in a near term uptrend.
Recently, the stock breached a resistance at ₹150 as well as 21-day moving average, which had turned into a key support and cushioned the stock. Strengthening the uptrend, the stock gained 4.8 per cent with above average volume on Wednesday. Both the daily and weekly relative strength indices are charting upward in the neutral region. The daily price ROC feature in the positive territory implying buying interest.
The short-term outlook is bullish for the stock. It can continue to rally and hit the price targets of ₹163 and ₹166.5 in the coming days. Buy the stock with a stop-loss at ₹153.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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