Yoganand D

BL Research Bureau

Investors with a short-term perspective can consider buying the stock of Jubilant Industries at current levels. Last week the stock jumped 9.7 decisively breaking through a key resistance at ₹230. But subsequently it encountered resistance at ₹255 and failed to breach it. Following a corrective decline the stock emphatically breached this resistance on Monday by gaining 10 per cent. This has reinforced the bullish momentum. It trades well above its 21 and 50-day moving averages. There is an increase in daily volume over the past five trading sessions. The daily relative strength index has re-entered the bullish zone and the weekly RSI has also entered this zone from the neutral region. Both the daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest. Medium as well as short-term trends are up for the stock. Traders can buy with a stop-loss at ₹260. Short-term targets are ₹282 and ₹290 levels.

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

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Published on November 7, 2016