The stock of Dishman Carbogen Amcis climbed 5 per cent, reversing higher from the 50-day moving average on Tuesday. This rally provides investors with a short-term perspective an opportunity to buy the stock at current levels.

After a strong rally in the months of June and July this year, the stock recorded a 52-week high at ₹216 in early August and encountered a key resistance. The stock subsequently, changed direction and was on a medium-term downtrend until it found support at ₹120 in mid-November; 200-day moving average also cushioned at this level.

Thereafter, the stock continued to trend upwards and has been in a short-term uptrend that appears to have been strengthened now. The stock trades well above the 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region.

Further, the daily and the weekly price rate of change indicators are featuring in the positive terrain, implying buying interest. Overall, the short-term outlook is bullish. The stock can continue to trend upwards and hit the targets of ₹169.5 and ₹172.5 in the ensuing sessions. Traders can buy the stock with a stop-loss at ₹159. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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