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The stock of Rallis India made a fresh high on the daily chart on Tuesday, opening the door for further strengthening.
After facing significant fall in March, the stock quickly reversed the trend and has been witnessing good upward momentum. Though the rally faced a hindrance at ₹230 in May, the stock broke out of it in June. The stock also breached the resistance at ₹250 on Tuesday. Thus, the price action on the daily chart hint at bulls gathering considerable amount of strength, and Tuesday’s price moderation might be a small pull-back before resumption of the rally.
Corroborating the bullish bias, the daily RSI is above the midpoint level of 50, showing a fresh uptick. The moving average convergence divergence indicator, which is in the bullish region, is in a strong upward trajectory. Also, the price is well above the 21- and 50-DMAs.
Traders can buy the stock with stop-loss at ₹250; near-term targets are ₹272 and ₹275.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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