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The stock of Minda Corporation, which has been rallying since the beginning of the year, entered a consolidation phase in June. That is, since June, it was largely oscillating within ₹125 and ₹145. But the stock has been rallying for the past few sessions and on Thursday, it broke out of the resistance at ₹145, opening the door for further strengthening.
The bullish outlook is substantiated by the price action – a rally followed by a consolidation phase and then a breakout. The breakout volume is significant, and the relative strength index (RSI) and the moving average convergence divergence (MACD) is showing a fresh uptick. Thus, the likelihood of further rally is high.
Traders can buy the stock at current level and accumulate if price corrects to ₹142. Place an initial stop-loss at ₹137. On the upside, the stock has the potential to reach ₹164 in the near-term. If the stock crosses over ₹155, revise the stop-loss upwards to ₹146. Similarly, if the rallies without falling to ₹142 and moves above ₹155, place a stop-loss at ₹146.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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