Investors with a short-term perspective can consider buying the stock of Exide Industries at current levels. Since taking support at ₹116 in January 2016, the stock has been on a long-term uptrend forming higher peaks and troughs. The corrective fall from the October high of ₹204 found support at around ₹171 – the 38.2 per cent Fibonacci retracement level in November, and again in December last year. This support provided a good base for the stock.
On Wednesday, the stock jumped 3.8 per cent, breaching a key resistance at ₹186. With this rally, the stock appears to have resumed its long-term uptrend. Moreover, the stock is trading well above its 21- and 50-DMAs. The daily relative strength index has re-entered the bullish zone. The daily price rate of change indicator has also entered the positive terrain, implying buying interest. The short-term outlook is bullish for Exide Industries. Buy the stock with stop-loss at ₹185. Targets are ₹197 and ₹201.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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