Investors with a short-term perspective can buy the stock of Deepak Fertilisers & Petrochemicals Corporation at current levels. Since the stock took support at around ₹60 in mid-March 2020, the stock has been in a medium-term uptrend. In late April, the stock had decisively breached a key resistance at ₹100 which later turned as a crucial support. Thereafter the stock began to move sideways with an upward bias.

On Monday, the stock zoomed 9 per cent accompanied by above average volume, breaking an immediate resistance at ₹110. Moreover, the stock trades well above its 50- and 200-day moving averages. There has been an increase in daily volume over the past three trading sessions.

The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI has also just entered the bullish zone backing the up-move. Besides, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹118 and ₹121 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹110.5.

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

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