Technical Analysis

Usha Martin (₹129.15): BUY

Gurumurthy K |BL Research Bureau | Updated on: Jul 04, 2022

The 5 per cent rise on Monday has taken the stock well above the near-term resistance at ₹126

The short-term outlook for the stock of Usha Martin in bullish. The stock made a low of ₹99.45 last month on June 20. It has been moving up consistently since then. The stock has surged 30 per cent from that low. The bounce from the June low has happened from the 200-Day Moving Average. It also confirms the reversal of the short-term downtrend that was in place since April this year.

The 5 per cent rise on Monday has taken the stock well above the near-term resistance at ₹126. This level of ₹126 can now act as a good support. Below that ₹123 is the next key support.

The stock can test ₹140 – the 61.8 per cent Fibonacci retracement resistance in the next couple of weeks. A strong break above ₹140 can take the stock further up to ₹160 in a month or so. Traders can buy the stock at current levels.

Accumulate longs at ₹127. Stop-loss can be kept at ₹121. Trail the stop-loss up to ₹132 as soon as the stock moves up to ₹135. Move the stop-loss further up to ₹134 as soon as the stock touches ₹137. Book profits at ₹139.

(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)

Published on July 05, 2022
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