Comments
Investors with a shot-term view can buy the stock of UPL at current levels. The stock surged 3.7 per cent accompanied by above average volume on Monday, breaking above a key immediate resistance at ₹587 as well as the 200-day moving average. Moreover, the stock has decisively breached its 21- and 50-day moving averages and hovers well above them. This reinforces the short-term uptrend.
Following a sharp fall in July and early August this year, the stock took support at ₹500 and changed direction triggered by positive divergence in the daily relative strength index. Since then the stock has been in a short-term uptrend.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI hovers in the neutral region with an upward bias. Both the daily and the weekly price rate of change indicators feature in the positive terrain implying buying interest.
The short-term outlook is bullish. The stock can extend the uptrend and knock the price targets of ₹627 and ₹640 in the short term. Traders can buy the stock with a stop-loss at ₹591.
(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.