The stock of VRL Logistics gained 6 per cent on Thursday, breaching a key resistance at ₹160. This rally provides investors with a short-term horizon an opportunity to buy the stock at current levels. Since encountering a key resistance at ₹184 in mid-April, the stock has been in a broad sideways consolidation phase in the wide band between ₹145 and ₹184. Within this range, the stock took support at ₹145 in early August and began to trend upwards. While trending up, recently the stock surpassed its 21- and 50-day moving averages decisively and trades well above them. The stock has gained 12 per cent so far this week, witnessing buying interest. There has been an increase daily volume over the past six trading sessions. The daily relative strength index features in the positive territory implying buying interest. Also, the weekly RSI has entered the neutral region from the bearish zone. Both the daily as well as the weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish for the stock. It can extend the current up-move and reach the price targets of ₹175.5 and ₹179 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹164.5. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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