Investors with a short-term perspective can buy the stock of Wockhardt at current levels. The stock has been in an intermediate-term uptrend since registering a 52-week low at ₹147 in late March this year. In late July, the stock took support at around ₹250 and continued to trend upwards. However, the stock had encountered a key resistance at ₹342 in early August and was on a short-term downtrend until last week. It took support at ₹270 and continued to trend upwards.
On Monday, the stock gained 5 per cent with above average volume, decisively breaching a key immediate resistance at ₹300 as well as the 50-day moving average. The stock trades well above the 21- and 50-day moving averages. With the recent rally, the stock's short-term downtrend is weakening and the stock has potential to extend the up-move.
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The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is likely to enter the bullish zone from the neutral region. Both the daily and the weekly price rate of change indicator are featuring in the positive terrain implying buying interest. The short-term outlook is bullish. The stock can reach the price targets of ₹330 and ₹337 in the coming trading sessions.
Traders can buy with a stop-loss at ₹310.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)