Stocks

Redington India (122.9): Buy

Yoganand D BL Research Bureau | Updated on October 13, 2020 Published on October 13, 2020

The stock of Redington India has been in an intermediate-term uptrend since it took support at around ₹60 in late March. In late August, the stock had decisively breached the key medium-term resistance at ₹100 and met with next resistance at ₹131. Thereafter, the stock started to witness a sideways move with a positive bias.

On Tuesday, the stock jumped 5.6 per cent breaking above a key resistance as well as the upper boundary of the sideways movement which is ₹120. The stock trades well above the 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is featuring in the bullish zone. The daily price rate of change indicator hovers in the positive territory, implying buying interest.

Overall, the short-term outlook is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹128 and ₹131 levels in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹119.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on October 13, 2020
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