The stock of Phillips Carbon Black has gained 5 per cent with above average volume witnessing buying interest on Tuesday. This rally provides investors with a short-term perspective an opportunity to buy the stock at current levels.
Since registering a 52-week low at ₹54 in late March this year, the stock has been on an intermediate-term uptrend forming higher peaks and higher troughs. After a recent corrective decline, the stock took support at around ₹112 in the past week and bounced up, resuming the uptrend.
The stock trades well above its 21- and 50-day moving averages. The short-term trend is also up. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Moreover, the daily has entered the positive terrain, implying buying interest.
The short-term outlook is bullish for the stock. It can continue to trend northwards and hit the price targets of ₹132 and ₹135 in the upcoming trading sessions.
Traders can buy the stock with a stop-loss at ₹123.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)