The stock of Jyothy Laboratories is poised for a break out after a near-3 per cent rise on Wednesday. This was accompanied by above average volume. Investors with a high risk appetite can consider buying the stock at current levels. Both the long- and medium-term trends are up for the stock.
The stock has managed to breach its 21- and 50-day moving averages and also trades well above its 200-day moving average. The daily relative strength index has started moving higher in the neutral region and the weekly RSI has re-entered the bullish zone.
Moreover, both the daily and weekly price rate of change indicators are featuring in the positive territory, implying buying interest. A decisive break above ₹316 can accelerate the stock northwards to the price target of ₹328.5 and then ₹335.5 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹308.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)