The outlook is bullish for KEI Industries. The stock has surged about 10 per cent on Wednesday has taken the share price well above the key resistance level of ₹3,165. Prior to this rise the stock has formed a strong base above ₹3,000. The level of ₹3,165 will now act as a strong support and limit the downside. Intermediate dips are likely to see fresh buyers coming into the market below ₹3,200.
KEI Industries share price can rise to ₹3,650 over the next two-three weeks. Traders can go long now. Accumulate on dips at ₹3,220. Keep a stop-loss at ₹3,090 initially. Trail the stop-loss up to ₹3,360 as soon as the stock moves up to ₹3,420. Move the stop-loss further up to ₹3,510 when the price touches ₹3,580. Exit the long positions at ₹3,620.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)