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HP Adhesives’ stock bottomed out in March this year after taking support at ₹310. Since then, it has been steadily appreciating. Notably, it broke out of the key ₹500 resistance on Monday, opening the door for further upside. But the stock saw a decline on Wednesday. Nevertheless, the resistance-turned-support at ₹500 stays true and thus, the price drop on Wednesday is likely to be a corrective decline only.
We expect the stock to resume the uptrend and particularly, it could rally on Thursday, making it a good buy for intraday. Hence, go long on the stock of HP Adhesives at the current level of ₹503 with stop-loss at ₹492. When the stock moves past ₹518, tighten the stop-loss to ₹510. Book profits at ₹525.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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