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Investors with short-term perspective can buy the stock of Sterlite Technologies at current levels. The stock recorded a 52-week low at ₹59.8 in early March this year and began to move sideways. It subsequently took support in the band between ₹59 and ₹63 and started to trend upwards in early April. Since then, the stock has been in a medium-term uptrend.
On Tuesday, the stock jumped 6.4 per cent with above average volume, breaching a key medium-term resistance at ₹100. This rally has strengthened the medium-term uptrend. Moreover, the stock trades well above its 21- and 50-day moving averages. There has been an increase in daily volume over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region. Further, the daily and the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
The short-term forecast is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹110.5 and ₹112.5 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock with a stop-loss at ₹103.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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