The stock of Torrent Pharmaceuticals provides a good trading opportunity. The stock surged 3.4 per cent on Thursday and closed higher for the fifth consecutive day. Volume accompanied was extraordinary. The short-term outlook is bullish for the stock. The probability of a breach of its previous peak of ₹688.7 recorded on May 12 appears high.
The stock has formed a strong base by consolidating around the 21-day moving average, currently at ₹625.4, for about three weeks. Intermediate dips could attract fresh buying interest in the market.
Traders with a short-term perspective can initiate fresh long position with a stop-loss at ₹679 for a target of ₹695. Immediate support for the stock is at ₹680 and then at ₹670. The 21-day moving average at ₹625.4 will be the key short-term support for the stock which needs to be broken in order to turn the outlook bearish.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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