The outlook is bullish for Blue Star. The 2.4 per cent rise on Tuesday indicates that a new leg of upmove has begun. Prior to this rise, the stock was in a corrective fall for more than three weeks. The 21-Day Moving Average (MA) halted that fall by providing support. The bounce from this moving average support strengthens the bullish case to see more rise. Supports are at ₹890 and ₹878 – the 21-Day MA.
Blue Star share price can rise to ₹875-880 over the next two-three weeks. Traders can go long now. Accumulate on dips at ₹895. Keep the stop-loss at ₹865. Trail the stop-loss up to ₹920 as soon as the stock moves up to ₹930. Move the stop-loss further up to ₹945 when the price touches ₹960. Exit the long positions at ₹975.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)