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The stock of Hikal jumped 11.5 per cent with strong volumes, decisively breaking through the key ₹225-230 resistance band on Tuesday.
Since taking support at around ₹120 in early April 2016, the stock has been on an intermediate-term uptrend forming higher peaks and troughs. But it encountered key resistance in the band between ₹225 and ₹230 and was consolidating sideways since October until the recent break-out. It is trading well above its 21- and 50-DMAs. The daily relative strength index has entered the bullish zone from the neutral region. The daily as well as weekly price rate of change indicators are featuring in positive territory, implying buying interest. The intermediate-term uptrend-line is in tact. The stock can continue its uptrend and reach the price targets of ₹253 and ₹258 in the coming trading sessions.
Traders with a short-term perspective can buy the stock with a stop-loss at ₹238 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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