Despite hitting a fresh lifetime high of ₹1,231.9, the stock of Havells India posted a minor loss on Wednesday. However, the secular trend is up, and the price drop only seems to be a correction which can be utilised to make fresh long entries. Hence, traders looking for short-term ideas can buy the stock.
After bottoming out in May 2020, the share price of Havells has been steadily gaining, and in early January this year, it raced past the psychological level of ₹1,000.
Even as the stock has already clocked a year-to-date gain of about 30 per cent, bulls have not lost steam, and the potential to advance more is huge.
Corroborating the long-term uptrend, the relative strength index and the moving average convergence divergence indicator on the weekly chart are up and steady, and the average directional index is indicating a strong bull run.
The breakout of ₹1,182 on Tuesday indicates fresh build-up in upward momentum.
Hence, one can buy the stock with a stop-loss at ₹1,155, and look for targets of ₹1,275 and ₹1,300.
The recommendations are based on technical analysis. There is risk of loss in trading