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Investors with a short-term view can buy the stock of Wockhardt at current levels.
On Thursday, the stock jumped 5 per cent with above average volume, decisively breaching its 200-day moving average as well as a key resistance at ₹265. Moreover, this rally has conclusive breached its moving average convergence (21-, 50- and 200-day moving averages) at around ₹260.
The stock has been trending upwards over the past one week and appears to have resumed the medium-term uptrend that has been in place since March low of ₹147. There has been an increase in daily volume over the past one week backing the up-move. The daily relative strength index is likely to enter the bullish zone from the neutral region and the weekly RSI hovers in the neutral region with an upward bias.
Further, the daily as well as the weekly price rate of change indicators have entered the positive terrain 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 ₹285 and ₹290 levels.
Traders can buy the stock with a stop-loss at ₹267 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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