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Accompanied by above average volume, the stock of Granules India jumped 4 per cent on Wednesday. During the rally, it decisively broke a key resistance at ₹167 and exceeded the 21-DMA.
The stock has been in a medium-term uptrend since it took support at ₹114 in late March this year. But the stock encountered a key resistance at ₹180 in early April and started to trend sideways in a wide range between ₹154 and ₹180. Last week, the stock took support from the lower boundary at ₹154 and resumed its medium-term uptrend.
The stock trades well above its 21- and 50-DMAs.
The daily relative strength index has entered the bullish zone from the neutral region 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 have entered the positive terrain indicating buying interest.
The short-term outlook is positive for the stock and it can continue to trend upwards in the upcoming trading sessions. Targets are ₹179 and ₹182.5. Traders can buy the stock with a stop-loss at ₹168 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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