Bata India has been hovering in the ₹550-600 range for about three weeks. Within the range the bias seems to be positive for a bullish breakout above ₹600 in the coming days. The stock fell to a low of ₹566 last week but has sharply reversed higher from there. Technically, this reversal has happened from the 21-DMA support at ₹567.
The stock surged 2 per cent on Monday adding strength to the recent reversal. Immediate support is at ₹580. A rise to test ₹600 — the upper end of the range is possible in the coming days. A strong break above ₹600 can take the stock to ₹605 and ₹607 thereafter. Traders with a short-term perspective can go long. Stop-loss can be placed at ₹575 for the target of ₹605. Intermediate dips to ₹580 can be used to accumulate longs. Revise the stop-loss higher to ₹590 as soon as the stock touches ₹600. The outlook for the stock will turn negative if it breaks decisively below the 21-DMA support.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)