The stock of Unichem Laboratories rose 4.6 per cent breaking through a key resistance as well as 200-day moving average at around ₹218 on Tuesday. At current levels, this rally gives a buying opportunity for traders with a short-term perspective. Following a short-term downtrend from the peak of ₹267, the stock found support at ₹203 in early February. The stock’s long-term uptrend line and a significant base band between ₹200 and ₹205 provided this support. The recent rally has breached the stock’s short-term downtrend line and 21-day moving average, strengthening the uptrend. Volumes have been increasing in the past two sessions.
The daily and weekly relative strength indices are moving higher in the neutral region towards the bullish zone. The short-term outlook for the stock is bullish. It can continue the ongoing rally and reach the price target of ₹233 and ₹238 in the upcoming sessions. Buy the stock with a stop-loss at ₹219.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.