Investors with a short-term horizon can buy the stock of Jyothy Labs at current levels. The stock jumped almost 7 per cent accompanied by above average volume, decisively breaking above a key resistance at ₹150. Moreover, this rally has also breached a medium-term down trendline that was intact since this April.
In late August, the stock found support in the long-term base band between ₹138 and ₹140. Thereafter, it reversed direction. The stock has been in a near-term uptrend over the past two weeks. It has conclusively breached the 21- and 50-day moving averages in the recent rally and now trades well above them.
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. Besides, the daily price rate of change indicator hovers in the positive terrain implying buying interest.
The short-term outlook is bullish for the stock and it has potential to trend upwards and reach the price targets of ₹165.5 and ₹168.5 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹155.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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