The short-term outlook is bullish for United Spirits. The stock had risen over 2 per cent on Tuesday when the broader markets witnessed a strong sell-off.
There is an inverted head and shoulder pattern formation on the chart. The neckline support at ₹1,550 was just broken on Tuesday. A strong follow-through rise from here will confirm this pattern. There is a cluster of support in the ₹1,530-₹1,500 region.
A fall below ₹1,500 is less likely now as fresh buyers can limit the downside. United Spirits share price can rise to ₹1,650-₹1,670 in the coming weeks. Traders can go long now at ₹1,562. Accumulate on dips at ₹1,530. Keep the stop-loss at ₹1,480.
Trial the stop-loss up to ₹1,595 as soon as the stock goes up to ₹1,610. Move the stop-loss further up to ₹1,625 when the share price touches ₹1,640. Exit the longs at ₹1,670.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)