Investors with a short-term perspective can buy the stock of Dalmia Bharat Sugar and Industries at current levels. On Thursday, the stock gained 4.8 per cent with good volume breaking above a resistance level as well as symmetrical triangle pattern at around ₹181. Since taking support at around ₹100 in November, the stock has been on an intermediate-term uptrend. However, the stock started to move sideways forming a triangle pattern after recording a multi-year high of ₹202 in January 2017.
The symmetrical triangle is a continuationpattern that indicates resumption of the uptrend. The stock trades well above its 21 and 50-day moving averages. With the recent rally, the stock's near-term trend has turned up. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI continues to hover in the bullish zone. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest. The short-term outlook is bullish. The stock can continue its uptrend and reach our price targets of ₹195 and ₹199 in the short-term. Buy with a stop-loss at ₹183.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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