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The stock of Greaves Cotton gained 5.7 per cent with extraordinary volume on Tuesday and has surpassed the 21- and 50-day moving averages. This rally appears to have strengthened the bullish momentum and investors/traders with a short-term perspective can buy.
In November 2020, the stock took support in the band between ₹66 and ₹70 and began to trend upwards. Since then, the stock has been in an intermediate-term uptrend. But, it met with a key resistance at ₹158 in early March and began to decline. After a short-term downtrend, the stock found support at ₹120 in mid-April and started to move sideways.
Greaves Cotton has a significant support between ₹120 and ₹125 and has moved above the key resistance at ₹135 on Tuesday. With the recent upmove, the stock appears to have resumed the uptrend. There has been an increase in volume over the past three trading sessions. The stock can reach ₹143 and ₹146. Traders can buy the stock with a stop-loss at ₹134.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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