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We recommend a buy in the stock of Whirlpool of India from a short-term perspective. It is apparent from the charts of stock that it has been in an intermediate-term uptrend, since registering its 52-week low at Rs 141 in January 2012. In June, the stock took support in the base zone between Rs 190 and Rs 200 and continued it uptrend. The stock's 200-day moving average also cushioned the stock in the aforesaid base zone. Since then, it has been in a medium-term uptrend. Last week, the stock jumped more than 10 per cent with good volume, emphatically breaking through its key resistance at Rs 230.
On Monday, continuing its bullish momentum, the stock jumped four per cent accompanied by above average volume. The stock is trading well above both the 50- and 200-day moving averages. Both daily and weekly relative strength index are featuring in the bullish zone. Further, daily as well as weekly moving average convergence divergence indicator are hovering in the positive territory implying upward momentum.
The daily price rate of change indicator is hovering in the positive terrain implying buying interest. We anticipate the stock up move to prolong and reach our price target of Rs 261 or 269 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 246.
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