Ipca Laboratories (₹662.7)

Yoganand D | | Updated on: Feb 22, 2018
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The stock of Ipca Laboratories gained 3.7 per cent with good volume on Thursday. During the rally, the stock broke above a key long-term resistance at ₹640. The jump has given investors/traders an opportunity to buy the stock at current levels.

Since taking support at ₹400 in August 2017, the stock has been in an intermediate-term uptrend. The corrective fall that was in place since January found support at ₹500 in early February this year, Subsequently, the stock resumed its uptrend. Since then, the stock has been in a short-term uptrend. While trending up, the stock decisively breached its 21- and 50-day moving averages and a key barrier at ₹600.

The daily relative strength index has re-entered the bullish zone and the weekly RSI featuring in this zone strengthens the uptrend. Both the daily and weekly price rate of change indicators hover in the positive territory signifying buying interest. There has been an increase in daily volume over the past two trading days.

Short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets are ₹680 and ₹700 in the ensuing trading sessions. Traders can buy with a stop-loss at ₹650.

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

Published on February 22, 2018

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