Investors with a short-term perspective can buy the stock of Westlife Development at current levels. Since the stock took support from the significant base level at around ₹400 in mid-April this year, it has been in a medium-term uptrend.

While trending up, the stock had surpassed a key resistance at ₹480 in June and continued to trend upwards. However, it met with a key resistance at ₹577 in late July and began to witness a corrective decline. The stock found support at around ₹582 and bounced up, halting the near-term corrective decline. Thereafter, the stock resumed the uptrend. On Tuesday, the stock gained 3.3 per cent with good volume and has surpassed a key immediate hurdle at ₹520. Moreover, the stock has managed to close above the 21- and 50-day moving averages.

There has been an increase in volume over the past four trading sessions. With the recent rally, the stock appears to have resumed the medium term uptrend. The daily relative strength index is charting higher in the neutral region and the weekly RSI has re-entered the bullish zone from the neutral region. Overall, the short-term outlook is bullish with targets at ₹563 and ₹573. Traders can buy the stock with a stop-loss at ₹529.

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

Related Topics
comment COMMENT NOW