The stock of Eveready Industries India Ltd had surged 7.6 per cent on Thursday. This has strengthened the bullish momentum. The stock has been in a strong uptrend since April last year. Within this uptrend, the price action since late February this year is in the form of a bull channel on the chart. The stock has formed a strong base above the channel support around ₹320 since end-August.
The stock has potential to target ₹420-430 on the upside in the coming weeks.
Traders with a short-term perspective can buy the stock at current levels. Accumulate long positions on dips at ₹350. Stop-loss can be placed at ₹340. Trail the stop-loss to ₹390 as soon as the stock moves up to ₹405.
Move the stop-loss further up to ₹405 as soon as the stock moves up to ₹420. Profits can be booked at ₹430. The region around ₹430 is a strong channel resistance. As such, we can expect the stock to reverse lower from ₹430.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)