The outlook for the stock of EID Parry is bullish. The stock has risen about 10 per cent over the last week and has a room to rise further. The immediate resistance is at ₹554 and the next is at ₹540. The chances are high for the stock to sustain above ₹554 and if it breaks below this level, the downside could be limited to ₹540. The stock can rise to ₹590 and ₹610 in next one or two weeks.
Traders can go long at current levels and accumulate on dips at ₹556. Keep the stop-loss at ₹535 and trail the stop-loss up to ₹572 when it moves up to ₹579. Move the stop-loss further up to ₹582 as soon as the stock touches ₹589 on the upside. Book profits at ₹605.
The bullish outlook will get negated only on a break below ₹540, and in which case, a fall to ₹520 is possible.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)