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After an intermediate-term downtrend, the stock of Future Retail found support at ₹323 in November 2019. The stock thereafter started to consolidate sideways in a narrow band between ₹323 and 353 with an upward bias. Investors with a short-term perspective can buy the stock at current levels.
Decisively breaching its 21- and 50-DMAs, the stock gained 3 per cent on Tuesday with by above average volume. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Further, both the daily as well as the weekly price rate of change indicators have decisively entered the positive terrain implying buying interest.
The stock has been trending upwards over the past one week and currently tests a key resistance at ₹353. Though the stock currently tests the upper boundary of the sideways range, the indicators are showing bullish signs and project an upward breakthrough.
The resumption of the near-term uptrend can take the stock higher to ₹368 initially and then to ₹375 in the upcoming trading sessions.
Traders with a high-risk appetite can buy the stock at current levels with a stop-loss at ₹345.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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