Comments
The stock of Asian Paints, which was consolidating in a broad range between ₹1,300 and ₹1,480 in the first half of this year, broke out of the range in July. The stock then continued to rally and registered a lifetime high of ₹1,834.8 in October.
After that the stock declined to a low of ₹1,666.15 due to price correction, before resuming its uptrend again. On Wednesday, the stock took a significant step upwards as it closed above the resistance level of ₹1,760, opening the door for further appreciation.
The bullish view is corroborated by the daily relative strength index (RSI) and the moving average convergence divergence (MACD) indicator. The RSI is showing an uptick as it has crossed above the mid-point level of 50. Moreover, the MACD has also entered the positive territory. The stock currently hovers above the 21- and 50-DMAs.
Investors can buy the stock on declines with stop-loss at ₹1,725. The short- and medium-term targets are ₹1,834 and ₹1,900.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.