We recommend a buy in the stock of Dishman Pharmaceuticals & Chemicals from a short-term perspective. It is apparent from the charts of the stock that after a medium-term downtrend the stock found support at its long-term base level at Rs 65 in early March. This base level provided support for the stock in late March and again in April.

Triggered by positive divergence in daily moving average convergence divergence indicator and weekly relative strength index, the stock changed direction and started to move upwards. However, key resistance at around Rs 78 is halting the stock’s rally. On Tuesday, the stock gained 5.7 per cent accompanied by above average volume, breaching its 21- and 50-day moving averages. The daily MACD is trending northwards, in line with the stock price and is on the brink of entering the positive territory from the negative territory.

We are bullish on the stock from a short-term perspective. We expect the stock to trend upwards and reach our price target of Rs 76 or Rs 77.5 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 71.2 level.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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