The stock of Jyothy Laboratories zoomed 8 per cent surpassing a key resistance at ₹250 on Thursday. This rally creates buying opportunity for traders with a short-term perspective. After breaking a significant resistance at ₹210 in late August, the stock extended its rally until it encountered resistance at ₹300 in early September. The subsequent corrective decline found support around ₹235, retracing 50 per cent — fibonacci retracement level — of the prior uptrend. The stock has breached its 21- day moving average and is hovering well above 50- and 200-day moving averages.
The indicators on the daily chart have entered the bullish zone showing signs of strength. Our short-term outlook on Jyothy Laboratories is bullish. It can extend its rally and reach our price target of ₹267 and ₹272 in the approaching trading sessions. Buy the stock with a stop-loss at ₹251.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)