Todays Pick

Phillips Carbon Black (₹116.3): Buy

Yoganand D BL Research Bureau | Updated on August 12, 2020

The stock of Phillips Carbon Black jumped almost 8 per cent accompanied by above-average volume breaching a key medium-term resistance at ₹112. This rally provides short-term perspective traders with an opportunity to buy the stock at current levels.

Since recording a 52-week low at ₹54 in late March, the stock has been in a medium-term uptrend. In early August, the stock took support at ₹95 and continued to trend upwards, breaching its 200-day moving average recently.

Moreover, the stock trades well above its 50- and 200-day moving averages. The daily relative strength index features in the bullish zone, and the weekly RSI has just entered the bullish zone from the neutral region.

Further, the daily, as well as the weekly price rate of change indicators, are featuring in the favourable terrain implying buying interest. There has been an increase in daily volume over the past week.

Overall, the short-term outlook is bullish for the stock. It has the potential to trend upwards and reach the price targets of ₹121 and ₹124 in the coming trading sessions. Short-term prospective traders can buy the stock with a fixed stop-loss at ₹113.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on August 13, 2020

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