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Investors with a short-term horizon can buy Century Textiles & Industries at current levels. The stock had met with a key resistance at ₹380 in mid-September and witnessed a short-term downtrend until it found support at around ₹300 in late October. Subsequently, it changed direction from the long-term base level of ₹300 and continued to trend upwards.
However, the stock encountered resistance at ₹400 in early December and experienced a corrective decline to ₹360. Last week, the stock bounced up from ₹360 and surpassed the 21-day moving average initially. On Thursday, the stock surged almost 4 per cent with good volume, breaking above the barrier at ₹400.
This rally has strengthened the medium as well as short term uptrends of the stock. It trades well above the 21- and 50-day moving averages.
The daily as well as the weekly relative strength indices have entered the bullish zone from the neutral region, backing the uptrend. It can continue to trend upwards and reach ₹428 and ₹436.
Traders can buy the stock with a stop-loss at ₹402.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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