Technical Analysis

Trading Call: VA Tech Wabag (₹194): Buy

Yoganand D, BL Research Bureau | Updated on January 02, 2020 Published on January 02, 2020

The stock has gained 7.5 per cent accompanied by above average volumes on Thursday, moving above a key resistance level of ₹190.

For the past two months, the stock has been on a sideways consolidation phase in the band between ₹160 and ₹190. Key support in the ₹160-165 zone has cushioned the stock well. The on-going rally over the past few days is witnessing buying interest and the stock appears to have surpassed the upper boundary.

There has been an increase in daily volumes over the past three trading sessions. A strong rally above the immediate resistance level of ₹200 can take the stock higher to ₹210 and then to ₹215 in the coming weeks. Traders with a short-term view can buy the stock with a stop-loss at ₹183.

Published on January 02, 2020
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