Investors with a short-term perspective can consider buying the stock of Hikal, a small-cap pharma company at current levels. On Wednesday, the stock surged 3.6 per cent decisively breaching through a key resistance at ₹225 which was capping the upside since early October. The stock has been on an intermediate-term uptrend since its March trough at ₹116. Both medium- as well as short-term trends are up.
The stock trades well above its 21- and 50-DMAs. There has been an increase in daily volumes over the past five trading sessions.
Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest.
Short-term outlook for the stock is optimistic. It can continue its short-term uptrend and reach the price targets of ₹242 and ₹246 levels. Traders can buy the stock with stop-loss at ₹227.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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