The stock of Tribhovandas Bhimji Zaveri zoomed 10 per cent with good volume rebounding from a key support around ₹150 on Monday. Investors with a short-term perspective can buy the stock at current levels.
The recent rally has decisively breached the moving average compression, where the 21-, 50- and 200-day moving averages are poised. This strengthens the probability for the stock to gain further. Moreover, its near-term downtrend has come to a halt at the key support around ₹150. Monday’s rise signals the start of a new short-term upmove.
Both the daily and weekly relative strength indices have changed directions and are moving towards the bullish zone. Our short-term outlook on TBZ is bullish. The stock can extend its rally and reach the price target of ₹170 and then to ₹173.5 in the coming trading sessions. Buy the stock with a stop-loss at ₹160.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)