The outlook is bullish. The stock has formed an inverted head and shoulder bullish reversal pattern. The strong 8 per cent surge on Wednesday breaking above the resistance at ₹418 confirms this pattern. The level of ₹418 will act as a strong support. Intermediate dips are likely to get fresh buyers near this support. Vardhman Textiles share price can rise to ₹455-460 over the next two-three weeks. From a slightly wider time frame of two-three months, the stock has potential to target even ₹490 on the upside.
Traders can go long now. Accumulate on dips at ₹420. Keep a stop-loss at ₹410 initially. Trail the stop-loss up to ₹433 as soon as the stock moves up to ₹440. Move the stop-loss up to ₹442 when the price touches ₹448. Exit the longs at ₹455.
bl.Today’s pick: Stock to buy or sell, February 1, 2024
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)