Shoppers Stop (₹175): Buy

BL Research Bureau

Investors with a short-term perspective can buy the stock of Shoppers Stop at current levels. The stock had ended its short-term downtrend taking support at ₹148 in mid-July this year. Subsequently, it moved sideways in a narrow band between ₹148 and ₹167 with an upward bias. On Thursday, the stock gained 6 per cent accompanied by extra-ordinary volume decisively breaching the upper boundary as well as the key resistance at ₹167. Moreover, this rally has emphatically breached the 21- and 50-day moving averages and trades well above them. There has been an increase in daily volume over the past three trading sessions.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the neutral region from the bearish zone. Both the daily and the weekly price rate of change indicators are featuring in the positive terrain implying buying interest. The near to short-term outlook is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹182.5 and ₹186 in the ensuing trading sessions.

Traders with a short-term horizon can buy the stock with a stop-loss at ₹171 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)