Technical Analysis

EID-Parry India (₹149.5): Buy

Yoganand D BL Research Bureau | Updated on April 21, 2020 Published on April 20, 2020

Investors with a short-term perspective can buy the stock of EID-Parry (India) at current levels. The stock surged 8 per cent with above average volume on Monday, breaking above a key resistance at ₹140 which it was testing over the past two weeks. This rally has strengthened the short-term bullish momentum.

After a medium term downtrend from the February high of ₹245 levels, the stock found support at ₹100 in late March. It subsequently reversed direction triggered by positive divergence in the daily relative strength index. Since late March low, the stock has been in a short-term uptrend.

The stock recently breached its 21-DMA and hovers well above this average line. The daily RSI is charting higher in the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Besides, the daily price rate of change indicator is hovering in the positive terrain implying buying interest. The stock has potential to trend upwards and reach the price targets of ₹156 and ₹159 in the upcoming sessions.

Traders with a short-term view can buy with a stop-loss at ₹146 levels.

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

Published on April 20, 2020

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