The stock of Balaji Telefilms surged 3.5 per cent on Monday accompanied by strong volumes. The immediate outlook for the stock is bullish. This offers a good opportunity for short-term traders to initiate fresh long positions.
The recent pull-back from the high of ₹51.5 recorded on April 2 has taken support from the 21-day moving average, currently at ₹48.3 and the stock has risen sharply.
The stock now faces resistance at ₹51.5. But the price action on the chart suggests that this level can be breached. A break above ₹51.5 can take the stock higher to ₹52.5 and ₹53 in the coming days. Immediate support is at ₹49.7 and the next significant support is at ₹48.3. Traders with a short-term perspective can go long with a stop-loss at ₹49.3 for a target of ₹52.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)