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The stock of Kesoram Industries advanced 6.5 per cent with above average volume on Wednesday, breaking above a key hurdle at ₹66. This rally provides traders with a short-term perspective an opportunity to buy the sock at current levels. Since the stock took support at ₹17.2 in March 2020, the stock has been on an intermediate-term uptrend, forming higher peaks and troughs.
In November 2020, the stock surpassed a key long-term resistance at ₹44 and continued to trend upwards. Since then, it has been on a medium-term uptrend. Key support at ₹60 had cushioned the stock recently, from which it has bounced up. The stock trades well above the 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone backing the up-move.
Also the daily and the weekly price rate of change indicators hover in the positive territory implying buying interest. Overall, the short-term outlook is bullish for the stock. Targets are ₹71 and 72.5. Traders can buy the stock with a stop-loss at ₹66.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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