The short-term outlook for the stock of Welspun Corp is bullish. The stock rose 3.4 per cent on Monday breaking above the key resistance level of ₹240 and closed on a strong note. Monday’s rally happened after a sideways consolidation around the 100-Day Moving Average is currently at ₹234, for more than two weeks. Cluster of supports are there in ₹240-₹237 region which can cap the downside.
The stock has potential to target ₹280 over the next three-four weeks. Traders can go long now. Accumulate the stock on dips at ₹242. Keep the stop-loss at ₹232. Trail the stop-loss up to ₹251 when the stock moves up to ₹258. Move the stop-loss further up to ₹263 when Welspun Corp touches ₹268 on the upside. Book profits at ₹275.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)