Investors with a short-term horizon can buy the stock of EID Parry India at current levels. The stock has been on a short term uptrend since it took support at around ₹260 in mid-October 2020. In late November, the stock had conclusively breached a key resistance at ₹315 but after encountering resistance at around ₹350 it witnessed a corrective decline. However, the significant support at ₹315 provided base in past week and the stock once again started to trend upwards.
On Wednesday, the stock jumped with a gap-up open, gaining 5.5 per cent with good volume. This rally has decisively surpassed the 21-day moving average as well as the immediate resistance at ₹350 and has strengthened the stock's short-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone.The short-term forecast for the stock is bullish. It can rally and hit the price targets of ₹366 and ₹373. Traders can buy the stock with a stop-loss at ₹344.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Published on December 31, 2020
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