Rebounding from a key support at ₹78, the stock of Balrampur Chini Mills gained 6 per cent on Tuesday. With this upmove, the stock appears to have resumed its short-term uptrend. Investors with a short-term perspective can buy the stock at current levels. Since the February 2014 low of ₹36, the stock has been on a medium-term uptrend. While trending up, the stock conclusively broke through key long-term resistances. It is trading well above its 21- and 50-day moving averages.
The relative strength index on the daily chart has re-entered the bullish zone from the neutral region and the weekly RSI is featuring in the bullish zone, backing the medium-term uptrend. Other indicators on the daily as well as weekly charts continue to feature in the positive territory. . Our short-term outlook on the stock is bullish. It can extend its short-term uptrend and reach the price targets of ₹86.5 and 88.5 in the coming trading sessions. Buy the stock with a stop-loss at ₹81.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)