Stocks

Hikal (₹183): Buy

Yoganand D BL Research Bureau | Updated on September 17, 2020 Published on September 18, 2020

 

The stock of Hikal jumped 9.3 per cent accompanied by extra-ordinary volume on Thursday, breaking above a key short-term resistance at ₹175. This rally above a key barrier provides traders with a short-term perspective an opportunity to buy the stock at current levels. Since marking a 52-week low at ₹57 in late March this year, the stock has been in an intermediate-term uptrend. Medium as well as the short-term trends are also up. In August, the stock took support at ₹133 and continued to trend northwards. It has been in a short-term uptrend since then.

The stock trades well above its 50- and 200-day moving averages. Both the daily and the weekly relative strength index features in the bullish zone backing the up-move. Moreover, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest. There has been an increase in volume over the past three trading sessions.

Short-term outlook is bullish for the stock. It can continue to trend northwards and reach the price targets of ₹191 and ₹195 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹179. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on September 18, 2020
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