Investors with a short-term perspective can buy the stock of Kirloskar Ferrous Industries at current levels. The medium-term downtrend that began in January after a high of ₹121, found support at ₹81 in late March this year. Key support in the band between ₹81 and ₹83 provided base for the stock in late May and again in early June. Taking support from this zone, the stock has been trending upwards.
On Monday, the stock jumped 5 per cent per cent with good volume, breaching a key resistance at ₹91. Moreover, the stock has also decisively breached its 50- and 200-day moving averages and trades well above them.
The daily relative strength index has entered the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest.
Overall, the short-term outlook is bullish for the stock. It can extend its up move and hit the price targets of ₹100 and ₹102 in the upcoming trading sessions. Traders can buy with a stop-loss at ₹94.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)