Technical Analysis

Technical call: Buy Welspun Corp

Gurumurthy K | | Updated on: Nov 27, 2021
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The stock of Welspun Corp (₹169.9) has outperformed the broader markets over the last couple of weeks. It has surged 15 per cent in the last two weeks while the broader indices, the Nifty 50 and the Sensex, have tumbled about 6 per cent each . There is an inverted head and shoulder on the charts and the neckline support of it is at ₹150. Support is in the ₹153-150 region. The stock can rise to ₹200-225. A corrective fall from ₹200-225 to ₹180 cannot be ruled out. However, from a long-term perspective, a strong rise past ₹225 will pave way for ₹270-280. Medium and long-term investors can buy the stock at current levels. Accumulate the stock on dips at ₹155. Keep a stop-loss ₹133. Trail the stop-loss up to ₹173 as soon as the stock moves up to ₹185. Move the stop-loss up to ₹186 when the stock touches ₹195. Medium-term investors can exit at ₹210. Long-term investors, on the other hand, can book partial profits, say for 40 per cent of the holding at ₹210. Then move the stop-loss for the rest to ₹195 and hold it for a target of ₹260.

 

Published on November 27, 2021

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