Comments
Investors with a short-term horizon can buy the stock of Thirumalai Chemicals at current levels. The stock surged 6.3 per cent accompanied by extraordinary volume on Thursday, breaking above a key long-term resistance at ₹100 which was also psychological resistance levels.
Since the stock recorded a 52-week low at ₹31.5 in March 2020, it has been in an intermediate to long-term uptrend, forming higher highs and higher lows. In November 2020, the stock breached a key resistance at ₹80 and continued to trend upwards.
However, the stock had met with a resistance at ₹118 in early December and witnessed a near-term corrective fall. Key support at ₹90 had provided base for the stock in January this year and the stock gradually continued to trend upwards.
The recent breakthrough has strengthened the stock's uptrend. Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region.
The short-term outlook is bullish for the stock. Targets are ₹112 and ₹114. Traders can buy with a stop-loss at ₹105 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.