Investors with a short-term perspective can buy the stock of Graphite India at current levels. The stock has been on an intermediate-term uptrend since bottoming out from the August 2013 low of ₹57.5. Following a corrective decline, the stock found support at ₹92 in August 2014, and subsequently it resumed the uptrend by forming a bullish engulfing candlestick pattern — a bullish reversal pattern which has positive implications. The short-term trend is up.
On Monday, the stock surged 6 per cent with good volumes, breaching its 21- and 50-day moving averages. The indicators on the daily chart have started trending northward in line with the upward momentum. The short-term outlook is bullish and the stock has further upside potential in the near future. Traders with a short-term perspective can buy the stock with a stop-loss at ₹106.5. Targets are ₹113.5 and ₹115.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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