The stock of Future Retail surged 5.4 per cent on Tuesday and appears set for a further rally. Traders with a short-term perspective can consider buying the stock at current levels. Since reversing higher from a key support level at ₹66 in December 2013, the stock has been on an intermediate-term uptrend. Following a sharp upmove in April, the stock met with a key resistance at ₹145 in early May this year and began to move sideways. Its key support zone between ₹115 and ₹120 provided a base for the stock. Recently, the stock reversed higher just above this support zone and started trending higher.
The relative strength index on the daily chart is moving higher in the neutral region towards the bullish zone. Other indicators on the daily chart are about to re-enter then positive terrain. Our short-term outlook on the stock is positive. It has the potential to reach the price target of ₹138.5 and ₹141.5 in the coming trading sessions. Buy the stock with a stop-loss at ₹130.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)