Todays Pick

Radico Khaitan (₹1,242.4): Buy

Akhil Nallamuthu | | Updated on: Dec 30, 2021
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The stock of Radico Khaitan, which has been on an uptrend since March 2020, entered a consolidation phase in October this year. That is, since past two months, it has been oscillating between ₹1,015 and ₹1,200.

However, on Wednesday, the stock broke out of the resistance at ₹1,200, turning the outlook positive. Notably, the breakout is on the back of the upswing that began a week back. This rally has been supported by strong volumes as well. Thus, the breakout is less likely to fail, and the stock can build more upward momentum, going forward. Moreover, the RSI and the MACD on the daily chart are showing fresh uptick.

Given the above factors, one can be bullish on the stock. Traders can go long at current levels and add more longs if it moderates to ₹1,200. We might not see a drop below this level. Place initial stop-loss at ₹1,135. When the stock moves past ₹1,350, revise the stop-loss upwards to ₹1,225. Liquidate the longs when the price touches ₹1,425.

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

Published on December 30, 2021

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