The stock of Sterlite Technologies jumped ₹20.8 or 6 per cent with an above average volume on Monday, moving above a key medium-term resistance at ₹350. Investors with a short-term perspective can buy the stock at current levels.
Since taking support at ₹276 in early October, the stock has been on a short-term uptrend. While trending up, the stock decisively breached the key resistance levels of ₹300 and ₹320. After a minor correction, the stock appears to have resumed its short-term uptrend now. The stock trades well above its 50- and 200-day moving averages.
There has been an increase in daily volume over the past two weeks. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.
The short-term outlook is bullish for the stock of Sterlite Technologies. Traders can buy with a stop-loss at ₹358. The short-term price targets are ₹380 and ₹388.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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