Technical Analysis

Borosil Glass Works (₹211.4): Buy

Yoganand D, BL Research Bureau BL Research Bureau | Updated on February 18, 2020 Published on February 19, 2020

Investors with a short-term perspective can buy the stock of Borosil Glass Works at current levels.

The stock has been in an intermediate-term uptrend since recording a 52-week low at ₹112.5 in late August 2019. Significant support at around ₹155 cushioned the stock in early January this year and it resumed the uptrend. Since then, the stock has been in a short-term uptrend.

In early February, the stock had decisively breached a key resistance at ₹193 and managed to stay above this level. Strengthening the uptrend, it gained 4.6 per cent on Tuesday. There has been an increase in daily volume since early February. Besides, the stock trades well above its 50- and 200-DMAs.

The daily relative strength index has re-entered the bullish zone from the neutral region and the weekly RSI features in the bullish zone backing the uptrend. Both the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

Short-term outlook is bullish for the stock. It can extend the uptrend and reach the price target of ₹220 and ₹224.5 in the upcoming sessions. Traders can buy the stock with a stop-loss at ₹206.5.

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

Published on February 19, 2020
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