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The stock of Jubilant Foodworks registered its fresh lifetime high of ₹2,137.5 and ended the session a little lower at ₹2,123.8 on Monday. This has opened the door for further rally and the price action in the daily chart is supportive of the same. The stock witnessed a bullish reversal in late March after registering the then seven-month low of ₹1,138.2. A considerable rally followed but in June the stock entered a consolidation phase. The price was largely oscillating between ₹1,600 and ₹1,800. In the first week of August, the stock broke out of the range and has been appreciating.
Substantiating the upward bias, the daily relative strength index, which is in the bullish zone, is showing fresh uptick. The moving average convergence divergence too is in the positive territory and it has been charting an upward trajectory since the beginning of the current month. Since the indications are in favour of the stock, it is likely to advance further. Hence, traders with short-term perspective can buy the stock with stop-loss at ₹2,060. It can potentially rally to ₹2,200 and ₹2,240.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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