The stock of PI Industries Limited, that broke out of the resistance of ₹2,080 on Monday, posted a gain yesterday as well. It recorded a lifetime high of ₹2,199.85 before closing at ₹2,181.9 on Wednesday. Hence, the uptrend seems to be sustainable and the likelihood of further rally is high.
The scrip, after losing nearly 40 per cent in the month of March from the then high, marked a low of ₹970. It then recovered swiftly and established a strong uptrend. As a result, the stock more than doubled by August as it crossed over ₹2000. But what followed was a sideways trend, largely consolidating between ₹1,870 and ₹2,080.
This week, the stock has broken out of the range, opening the door for further appreciation. Corroborating the positive bias, the daily relative strength index has been steadily rising along with the stock and the moving average convergence divergence indicator in the daily chart, has been charting an upward trajectory. Given the above factors, traders can buy the stock with stop-loss at ₹2,120 and look for potential targets of ₹2,250 and ₹2,300.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)