Technical Analysis

Aditya Birla Fashion & Retail (₹150.8): Buy

Yoganand D BL Research Bureau | Updated on April 04, 2018 Published on April 04, 2018

The stock of Aditya Birla Fashion and Retail was resilient on Wednesday, when the benchmark indices fell more than one per cent. With an above average volume the stock surged 2.3 per cent reinforcing the bullish momentum. Investors with a short-term view can buy the stock at current levels. After a medium-term downtrend from the January high of ₹182, the stock found support at ₹132 in late March. Subsequently, the stock reversed direction triggered by a positive divergence in daily price rate of change indicator. Moreover, the stock had formed a bullish engulfing candlestick pattern, a bullish reversal pattern.

The stock has been in a near term uptrend over the past two weeks. While trending up, the stock emphatically breached its immediate resistance as well as the 21-day moving average at ₹145 in the past week. Both the daily and weekly relative strength indices are featuring in the neutral region. The daily price rate of change indicator has re-entered the positive territory implying buying interest.

The near-term outlook is bullish for the stock. Traders with a high-risk appetite can buy the stock with a stop-loss at ₹147.5. Targets are ₹157 and ₹160.

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

Published on April 04, 2018
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