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Breaking above a key medium-term resistance at ₹411, the stock of Godrej Agrovet surged 7.6 per cent on Tuesday with above average volume. This rally provides traders with a short-term perspective an opportunity to buy the stock at current levels. It took support at ₹265 in late March this year and reversed direction, triggered by positive divergence on the daily RSI. Since then, the stock has been in a medium term uptrend.
The short-term trend has been up over the past one month since finding support at ₹350 levels. In early June, the stock had surpassed its 21- and 50-day moving averages and trades well above them. With the recent rally, the daily RSI has re-entered the bullish zone from the neutral region and the weekly RSI is featuring in the neutral region. Moreover, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
Both the short- and the medium-term uptrends are intact for the stock. It can continue to move higher and hit the price targets of ₹444 and ₹452 in the ensuing trading sessions. Trader with a short-term horizon can buy with a stop-loss at ₹416 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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