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The stock of Vardhman Textiles has made a fresh breakout on Wednesday, opening the door for further strengthening. It marked a new 52-week high of ₹1,326 and going forward, the scrip is likely to scale new heights. Traders can consider buying this stock for the near-term.
Since hitting a low of ₹601 a year ago, the stock has more than doubled. However, the recovery has not been smooth. The stock faced several challenges en route to the current price level and had to break through many strong hurdles. In spite of this, it managed to bounce-off the 21-day moving average on a consistent basis and the recent breakout with significant volume has showed that bulls are holding strong.
Supporting the bullish bias, the relative strength index and the moving average convergence divergence indicators on the daily chart are hovering in the positive territory. Hence, traders can buy the stock with a stop-loss at ₹1,250. Short-term targets can be ₹1,360 and ₹1,375.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading)
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