The stock of IRB Infrastructure Developers surged 12.2 per cent accompanied by extraordinary volume, breaking above a key resistance at ₹80 on Thursday. Investors with a short-term perspective can buy the stock at current levels as the outlook is bullish.

Following an intermediate-term downtrend from the key resistance level at ₹160 encountered in early April this year, the stock found support at ₹56, recording a 52-week low in early October. Subsequently, the stock changed direction and has been in a short-term uptrend since then. After a corrective decline, the stock resumed the uptrend this week, taking support at ₹70. The recent up-move has decisively breached the 21- and 50-DMAs that strengthens the uptrend.

There has been an increase in daily volume over the past two trading sessions. Moreover, the daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region. Both the daily and the weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook is bullish. Targets are ₹89 and ₹91. Traders can buy with a stop-loss at ₹83.

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