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The uptrend that the stock of Laurus Labs established in July last year at about ₹100 continued till the end of the year. However, the bulls lost momentum and consequently, the stock entered a sideways trend in January 2021. Since then, it has been oscillating between ₹335 and ₹380.
But the stock seems to have regained its positive momentum this month as it broke out of the upper boundary of the range i.e., ₹380 during the first week. The trend looks strong as the increase in price is steady with good volume. Also supporting the bullishness are the indicators like the relative strength index and the moving average convergence divergence.
Both these indicators remain in their respective bullish territory. Also, the average true range, i.e. daily trading range has been increasing over the past month along with the price indicating good traction. Moreover, it hit a fresh high of ₹503.95 on Monday.Given the above factors, traders can consider short-term long positions in the stock with stop-loss at ₹478. Potential target can be ₹510.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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