Sudarshan Chemical Industries’ share price rose substantially on Wednesday. This led to the breach of a critical resistance at ₹425, which has been holding true since October last year. The stock hit a nine-month high of ₹453 on Wednesday before ending the session lower at ₹440. Following the breakout, the scrip shows potential to rally more, especially in the next couple of sessions.
But there could be an intraday dip to ₹425 on Thursday before further rally. So, traders can go long on the stock now at ₹440 and add more longs if the price dips to ₹425. The average price will thus be around ₹433. Keep stop-loss at ₹422. Book profits when the stock hits ₹455.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)