The stock of Rashtriya Chemicals & Fertilizers surged 4.4 per cent accompanied by above average volume breaking through a key resistance at ₹68 on Monday. This up move reinforces the bullish momentum and gives investors an opportunity to buy the stock. Key support around ₹50 provided base for the stock during August and late September. Since then, the stock has been on a short-term uptrend.
The intermediate-term trend is also up for the stock. It has surpassed the 21- and 50-day moving averages in late October and is hovering well above them. Further, the ongoing short-term uptrend is backed with good volume. Both the daily and weekly indicators are featuring in the bullish zone implying upward momentum. The stock can continue its current uptrend and reach the price target of ₹75 and then ₹76 in the coming trading sessions. Buy the stock with a stop-loss placed at ₹70 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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