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The stock of Marico gained 6.8 per cent on Tuesday, breaching its 21-DMA as well as a key near-term resistance at ₹266 on Tuesday. This rally provides an opportunity to buy the stock for investors with a short-term horizon.
Following an intermediate-term downtrend, the stock recorded a 52-week low at ₹233 in the previous week. The stock took support at around ₹235 and changed direction triggered by positive divergence in the daily RSI and price rate of change indicator.
Over the past one week the stock has been trending upwards and has surpassed a key resistance as mentioned above. The daily RSI is featuring in the neutral region and the weekly RSI is recovering from the oversold territory. Besides, the daily price rate of change indicator has entered the positive territory implying buying interest.
With the initial bullish signs, the short-term outlook for the stock is bullish. It can continue to trend upwards and reach the price targets of ₹286 and ₹295 in the upcoming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹268 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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