Investors with a short-term perspective can buy the stock of V2 Retail at current levels, taking a contrarian stance. The stock is in a long-term downtrend. The medium-term trend is also pointing downwards. Nevertheless, the stock found a key support at around ₹100 in late August and began to move sideways with a positive bias.

Over the past one month the stock has been range-bound in the band between ₹100 and ₹150. On Thursday, the stock gained 7.4 per cent.

Triggered by positive divergence in the daily relative strength index as well as moving average convergence divergence and the presence of a significant long-term support at ₹100 the stock changed direction recently.

The daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI has been recovering from the oversold territory.

The stock has the potential to trend upwards and reach the price targets of ₹120 and ₹123. Traders can buy the stock with stop-loss at ₹112.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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