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Investors with a short-term horizon with a contrarian view can buy the stock of Greenply Industries at current levels. The stock has been on an intermediate-term downtrend since January high of ₹401. Medium-term trend is also down. However, the stock found support at ₹110 in late October and changed direction triggered by positive divergence in the daily relative strength index as well as price rate of change indicator. Since then, the stock has been on a short-term uptrend.
After moving sideways for two weeks, the stock gained 4 per cent with good volume on Thursday. This rally strengthens the short-term uptrend. The stock has closed above its 21-day moving average and tests 50-day moving average. The daily price rate of change indicator has entered the positive territory implying buying interest. The weekly relative strength index and price rate of change indicators are recovering from the oversold territory.
Short-term outlook is bullish for the stock. Targets are ₹143.5 and ₹146. Traders can buy the stock with a stop-loss at ₹134.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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