The stock of EID-Parry India surged 7 per cent accompanied by extraordinary volume on Tuesday. It is apparent from the charts of the stock that it has been on an intermediate-term uptrend from its February-low of ₹118. The stock took support at ₹187 in early August after retracing 38.2 per cent Fibonacci retracement of the stock’s prior uptrend. The recent surge has conclusively breached the immediate resistance at ₹200 as well as its 21-day moving average.
The stock is now trading well above its 21- and 50-day moving averages. The relative strength index on the daily chart has entered the bullish zone from the neutral region while the weekly RSI continues to feature in the bullish zone. With the up-move, the stock appears to have resumed its intermediate-term uptrend. Our short-term outlook is bullish. It can rally further and reach the price target of ₹222.5 and ₹227 in the trading sessions ahead. Buy the stock with a stop-loss at ₹209.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)