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Investors with a short-term perspective can buy the stock of Redington India at current levels. The stock has been in a short-term uptrend since it took support from the 52-week low recorded at ₹60 in late March this year. But the stock had encountered a key resistance at ₹82 in early April and started to move sideways in the band between ₹69 and ₹82 for a while.
On Monday, the stock jumped 7 per cent accompanied by above average volume, decisively breaking above the upper boundary of the sideways consolidation phase level at ₹82 as well as the 50-DMA. This rally has strengthened the short-term uptrend that has been in place since late March.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. Besides, the daily price rate of change indicator is featuring in the positive territory implying buying interest.
With the recent breakthrough, the key resistance at ₹82 is intact.
Short-term outlook is bullish. The stock has the strength to extend the uptrend and reach the price targets of ₹89.5 and ₹91 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹83.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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