Jyothy Laboratories has gained bullish momentum recently. Investors with a short-term perspective can buy the stock at current levels. Following a corrective decline from its all-time high of ₹223, the stock took support at ₹190 early this month. This is a significant long-term support and coincides with the 38.2 per cent Fibonacci retracement level of the prior uptrend. In the past two trading sessions, it has surged almost 5 per cent, breaching its 21- and 50-day moving averages. With this current upmove, the stock appears to have resumed its intermediate-term uptrend that has been in place since the September 2013 low of ₹142. It can trend upwards and reach the price target of ₹210 and ₹214 in the approaching trading sessions. Buy the stock with a stop-loss at ₹197 level.

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

(This article was published on March 27, 2014)
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