Jubilant Foodworks sizzled almost 18 per cent with good volumes last week and marked new life-time high at Rs 848 on Friday. Since its listing in February 2010, the stock has been on a long-term uptrend. Moreover, after taking support around Rs 470 in February 2011, the stock resumed its upward journey and has been on a medium-term uptrend. As long as the stock trades above Rs 650, the medium-term outlook stays positive and the stock can register new highs. A fall below this level will negate the uptrend and drag the stock down to Rs 550.
Strong move above Rs 850 can lift the stock higher to Rs 885 and then to Rs 900 in the medium term. Conversely, reversal from Rs 850 or Rs 885 can pull the stock down to Rs 800 and then to Rs 745 in the short-term. Next support is pegged at Rs 670 levels.
The stock took support from its significant medium-term base level in the band between Rs 400 and Rs 410 during last week and skyrocketed 13 per cent. Previously in February and March it took support and bounced upward. Its 8 per cent surge on Friday has emphatically penetrated its 21- and 50-day moving averages, positioned around Rs 438.
Immediate key resistance for the stock is at Rs 500. Failure to move beyond this level will pull the stock lower to Rs 430 or Rs 400 in the medium-term. Decisive fall below Rs 400 will pull the stock down to Rs 300 in the long term. Nevertheless, strong breakthrough of Rs 500 can take the stock higher to Rs 550. Subsequent resistance is at Rs 600.