Technical Analysis

UPL (₹603.7): Buy

Yoganand D BL Research Bureau | Updated on October 01, 2019 Published on October 01, 2019

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.)

Published on October 01, 2019
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