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The stock of Suven Life Sciences gained 3.6 per cent on Thursday, breaching a key medium-term resistance at ₹272. This rally provides buying opportunity for the investors with a short-term perspective.
Since recording a 52-week low at ₹183 in late January this year, the stock has been in a medium-term uptrend. But the stock encountered a key resistance at ₹172 in early March and started to consolidate sideways in the band between ₹250 and ₹272 thereafter. Last session, the stock decisively breached the upper boundary and strengthened the bullish momentum.
The stock had breached the 21- and 50-day moving averages last week and hovers well above them. Moreover, there has been an increase in daily volume over the past one week. The daily relative strength index features in the bullish zone and the weekly RSI has entered this zone from the neutral region. The daily as well as weekly price rate of change indicator hovers in the positive territory implying buying interest.
The short-term outlook is bullish. The stock has the potential to trend upwards. Targets are ₹289 and ₹295. Traders can buy with a stop-loss at ₹271.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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