The stock of Jyothy Laboratories surged 3.4 per cent with above average volume breaking a key resistance at ₹280 on Tuesday. This rally gives a buying opportunity to traders with a short-term perspective. The stock has been in an intermediate-term uptrend since taking support at around ₹172 in late June. The stock has been in a medium-term uptrend from the November 2014 low of ₹225. It is trading well above its 21- and 50-day moving averages. The recent rally has strengthened the stock’s medium-term uptrend. Volumes have been increasing over the past two trading sessions.
The daily and weekly relative strength indices feature in the bullish zone backing the uptrend. The medium-term uptrend line is intact adding strength to the trend. The short-term outlook for Jyothy Laboratories is bullish. It can continue its upward journey and reach our price target of ₹301 and ₹307 in the forthcoming trading sessions. Buy the stock with a stop-loss at ₹283.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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