Investors with a short-term perspective can buy the stock of Aditya Birla Fashion and Retail Ltd (ABFRL) at current levels. The stock gained 6.5 per cent accompanied by extraordinary volume on Wednesday, breaking above a key medium-term resistance at ₹170. It has been in an intermediate-term uptrend since it took support at around ₹100 in May 2020. Key support in the band between ₹147 and ₹150 kept the stock's downside limited in December 2020 and February 2021. The stock continued to trend upwards after taking support at around ₹150 in this February and surpassed a key resistance at ₹170 recently.
With this rally it appears to have resumed the intermediate-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Overall, the short-term outlook is bullish for the stock. It has strength to extend the up-move and reach the price targets of ₹187 and ₹191 in the forthcoming trading sessions. Traders can buy the stock with a stop-loss at ₹175.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)