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The outlook for the stock of VIP Industries is bullish. Investors with a short-term perspective can consider buying the share at current levels. The stock surged 5.9 per cent on Monday breaking above an important resistance at ₹110. The stock was in a prolonged sideways move between ₹85 and ₹110 since November last year. Monday’s strong rally has broken this range, signalling the beginning of a fresh leg of upmove.
The level of ₹110 will now serve as a good support. Dips to this support are likely to find fresh buying interest in this stock. A rise to ₹120 is possible in the upcoming sessions. Traders with a short-term perspective can go long. Stop-loss can be kept at ₹108 for a target of ₹119. Intermediate dips to ₹110 can be used to accumulate. The outlook will turn negative only if the stock declines below ₹110. But such a fall looks less probable given that the strong breakout on Monday has happened on the back of strong volumes.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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Published on April 4, 2016
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