Investors with a short-term perspective can buy UPL Ltd, formerly known as United Phosphorus Ltd, in declines. The stock has gained 10.5 per cent in the past four trading sessions, surpassing its important resistance at Rs 170. This rally has been backed by an increase in volume.

Since the early August low of Rs 121, the stock has been on a medium-term uptrend, forming higher peaks and troughs. In late September, the stock decisively breached its moving average compressions (21-, 50-, and 200-day moving averages) around Rs 140 and continued its upward journey. The relative strength index on the daily chart is now featuring in the bullish zone. Other indicators such as the moving average convergence, divergence and price rate of change are also hovering in the positive territory reflecting an upward bias.

As the stock is testing its next key resistance at Rs 180, a minor correction can’t be ruled out. Investors can buy the stock in such corrections with a stop-loss placed at Rs 172. Resumption of the uptrend can take the stock higher to Rs 190 and then to Rs 195 in the short term.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)