The stock of India Tourism Development Corporation Ltd (ITDC) jumped 9.5 per cent breaking above a key resistance at ₹290 on Tuesday. It has been in limelight over the past two trading sessions and has gained 23 per cent.
Investors with a short-term perspective can buy ITDC at current levels. The stock recorded a 52-week low at ₹152 in late August and subsequently changed direction triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend.
In early September, it had encountered a key resistance at ₹270 and was on a sideways movement until the recent breakout.
Over the past two trading sessions, there has been an increase in daily volume. Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region. Similarly, the daily as well as the weekly price rate of change indicators are hovering in the positive territory implying buying interest.
The stock trades well above its 21- and 50-day moving averages. Overall, the short-term outlook is bullish for ITDC. The stock can continue to trend upwards. Targets are ₹308 and ₹315. Traders can buy with a stop-loss at ₹290.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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