Investors with a short-term perspective can buy the stock of UPL at current levels.
The stock found support at ₹400 in early November 2020 and bounced up following a short-term downtrend. Since early November 2020, the stock has been on a short-term uptrend. In late December, the stock surpassed its 21- and 50-day moving averages and continued to trend upwards. Near-term trend is also up for the stock.
Recently, the stock started to test the key resistance at ₹500 and it has surpassed this level on Thursday by gaining 3.6 per cent accompanied by above average volume. This rally has strengthened the short-term uptrend. The daily relative strength index continues to feature in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Besides, the daily as well as the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
Overall, the short-term outlook is bullish for the stock of UPL. The stock can continue to trend upwardsand the reach the price targets of ₹530 and ₹540 in the upcoming trading sessions. Traders can buy the stock with a fixed stop-loss at ₹498 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)