Investors with a short-term perspective can buy the stock of Eris Lifesciences at current levels. The stock has been in an intermediate-term uptrend, forming higher peaks and higher troughs since recording an all-time low at ₹321 in early March 2020. Medium-term trend is also up for the stock. While trending up, the stock had conclusively breached a key long-term resistance at ₹550 in mid-December and continued to trend upwards. Significant support in the band between ₹560 and ₹570 had cushioned the stock in the months if February and March this year.

After taking support this stock bounced up this week. On Thursday, the stock gained 4.2 per cent with good volume, breaching the 21- and 50-day moving averages decisively. This rally has strengthened the medium term uptrend. There has been an increase in volume over the past two trading sessions. Moreover, the stock has closed above an immediate resistance level of ₹600 which is a positive indication from a short term perspective. The daily relative strength index is on the brink of re-entering the bullish zone from the neutral region and the weekly RSI has entered the bullish zone from the neutral region. The short-term outlook is bullish for the stock. It has potential to extend the rally and reach the price targets of ₹630 and ₹642 in the coming trading sessions. Traders can buy with a stop-loss at ₹590 levels.

The recommendations are based on technical analysis. There is risk of loss in trading

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