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Investors with a short-term perspective can buy the stock of Wockhardt at current levels. In late November 2020, the stock had decisively breached a key long-term resistance in the ₹330-350 band and continued to trend upwards.
After registering a 52-week high at ₹569 in late December 2020, the stock faced a key resistance in the range between ₹550 and ₹570 in January this year. Thereafter the stock was on a short-term downtrend until last week.
The stock found support at ₹400 in the past week after retracing 61.8 per cent of the prior uptrend. Triggered by positive divergence, it changed direction and started the trend upwards recently.
On Tuesday, the stock gained 4.7 per cent, with above average volume, breaching a key resistance as well as the 21- day moving average at around ₹450. This rally has strengthened the bullish momentum.
The stock has potential to trend upwards and reach the price target of ₹478 and ₹488 in the coming sessions. Traders with a short-term perspective can buy, with a stop-loss at ₹449.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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