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Investors with a short-term horizon can buy the stock of FDC at current levels. The stock surged 6.7 per cent accompanied by extraordinary volume on Thursday and managed to close above a key immediate resistance level of ₹239.
Since taking support at ₹152 in October 2019, the stock has been in an intermediate-term uptrend. While trending up, the stock had decisively breached a key long-term resistance at around ₹205 in late December and continued to trend upwards. But, it witnessed a corrective decline after registering a new 52-week high at ₹269 in late February this year.
The stock took support at ₹225 and bounced up well on Thursday, resuming the uptrend. Medium-term trend is also up for the stock. The daily relative strength index is charting higher in the neutral region and the weekly RSI continue to feature in the bullish zone. Besides, the daily price rate of change indicator has re-entered the positive terrain implying buying interest and the weekly price rate of change indicator hovers in the positive terrain.
There has been spurt in volume over the past two trading session. Short-term outlook is bullish. The stock can extend the rally and reach the price targets of ₹253 and ₹258 in the ensuing trading sessions. Traders can buy with a stop-loss at ₹237.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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