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The stock of Linde India is on a strong uptrend since March 2020. It bounced after taking support at ₹400. But after reaching the resistance band of ₹2,950-3,000 in September 2021, the stock lost momentum and it could not extend the run further up. Nevertheless, there was not a bearish reversal, and the stock was largely moving across a horizontal trend i.e., it was fluctuating between the support at ₹2,300 and the resistance band of ₹2,950-3,000.
On Tuesday, the scrip broke out of the barrier at ₹3,000 with significant volumes indicating that the uptrend is set to resume. Supporting the bullish bias, the RSI and the MACD on the daily chart are showing fresh uptick. On the back of the breakout, the stock is likely to see a surge in price in the upcoming sessions. It is likely to rally to the price range of ₹3,475-3,500. On the downside, ₹3,050 can be a support.
Given the above factors, one can consider going long in the stock with stop-loss at ₹3,050 for a target of ₹3,475.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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