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Breaking above a key long-term resistance at ₹235, the stock of Wockhardt jumped 5 per cent on Thursday with above average volume.
The recent rally has also enabled the stock to surpass its 21- and 50-DMAs and trade well above them.
Investors with a short-term horizon can buy the stock at current levels. The stock has been in a medium-term uptrend since recording a 52-week low at ₹147.2 in late March this year. Following corrective decline, the stock found support at ₹212 in mid-May and gradually started to trend upwards.
With the breaking out of key resistance at ₹235, the stock appears to have resumed the up move. There has been an increase in daily volume over the past two weeks.
The daily RSI is likely to enter the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. Moreover, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain implying buying interest.
The short-term outlook is bullish. It has the potential to trend upwards and reach the price targets of ₹256 and ₹261 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹240.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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