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Investors with a short-term horizon can buy the stock of Laurus Labs at current levels. The stock jumped 4.2 per cent accompanied by above average volume on Thursday, breaking above a key immediate resistance at ₹355. Moreover, the stock has conclusively breached its 200-DMA.
After taking support at ₹303 in mid-October, the stock began to move sideways in a broad range, with a positive bias. With the recent rally, the stock has decisively breached its moving average compression (21-, 50- and 200-DMAs) around ₹355.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region with an upward bias. Both the daily and the weekly price rate of change indicators have entered the positive territory from the negative, implying buying interest.
Although the stock tests a resistance at ₹370, the short-term outlook is bullish and has potential to surpass it in the near future. A strong rally above ₹370 can take the stock to ₹385 and ₹393 levels.
Traders with a short-term view can buy with a stop-loss at ₹362 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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