BL Research Bureau
The stock of Mishra Dhatu Nigam (Midhani) has been trading broadly in a sideways range for a prolonged period of time since August 2020. The range of trade since then has been ₹170-₹222. Within this range, the stock tested a low of ₹175 in December and has been moving up thereafter. This indicates that the sideways range is intact. As such the short-term outlook is bullish for the stock to see a rise towards the upper end of the range from here. Intermediate resistances are at ₹198 and ₹208.
A break above ₹208 can trigger a rise to ₹220-₹222 – the upper end of the range in the coming weeks. Immediate support is at ₹180 and then in the ₹175-₹170 region.
Traders with a short-term perspective can go long at current levels. Accumulate longs on dips at ₹182. Keep the stop-loss at ₹172. Trail the stop-loss to ₹193 as soon as the stock moves up to ₹201. Move the stop-loss further up to ₹206 as soon as the stock moves up to ₹211. Book profits at ₹216.
The stock will have to see a breakout on either side of ₹170-₹222 to give a clear cue on the next direction of move.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)