Investors with a short-term perspective can consider buying the stock of Berger Paints at current levels. The stock surged about 5 per cent on Wednesday accompanied by strong volumes. It was stuck in a narrow range between ₹350 and ₹370 for more than two weeks. The sharp rally on Wednesday has broken this range and has made the short-term outlook bullish. The stock has closed above its 55-day moving average resistance at ₹368. The candlestick formation on the daily chart reflects strength and suggests that the momentum could continue. Immediate support is at ₹367. There is a strong likelihood of the stock rising further to target ₹380 and ₹385 in the coming trading sessions. Go long with a stop-loss at ₹367.
The outlook for the stock will turn negative if it records a decisive close below ₹350. The next targets will be ₹346 and ₹340, which are the 21-week and 100-day moving average support levels, respectively.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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