Todays Pick

VIP Industries (₹382.7): Buy

Yoganand D BL Research Bureau | Updated on June 02, 2021

The on-going rally in the stock of VIP Industries can continue in the short term. Following a short-term downtrend from the 52-week high of ₹421 recording in early March this year the stock found support at around ₹320 level in late April. The stock subsequently changed direction and began to trend upwards.

Since then, the stock has been in a budding short-term uptrend. While trending up, the stock has breached the 21- and 50-day in late May. After testing the key resistance at ₹370 for more than a week, the stock breached this hurdle on Tuesday by gaining 4.6 per cent. There has been an increase in volume over the past two weeks. The daily relative strength index features in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region.

The short-term forecast for the stock is bullish. It has potential to trend upwards and reach the price targets of ₹400 and ₹407 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹373 levels.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on June 02, 2021

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