The stock of Balrampur Chini Mills, which has been on an uptrend since March 2020, lost steam in May 2021. Since then, it was largely oscillating between ₹300 and ₹385. But notably, the scrip has been gaining traction over the past couple of weeks and consequently, it broke out of the range on Tuesday. The stock also closed above ₹400-mark and thus, the bulls seem to be coming back.

The outlook is positive, and this is substantiated by the RSI and the MACD on the daily chart, which are showing fresh uptick. Also, the breakout volume is significant. Therefore, traders can take a bullish outlook; the stock is expected to hit ₹500 in about three months. But the price can moderate to ₹400 before making fresh highs.

Considering the above factors, one can go at current levels and accumulate if price drops to ₹400. Place initial stop-loss at ₹375 and revise it upward to ₹420 if the stock goes above ₹450. Exit 50 per cent of the position at ₹475 and liquidate the remaining at ₹495.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)

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