The stock of Kajaria Ceramics Limited, after witnessing a fresh breakout, on Tuesday hit a fresh 52-week high of ₹775 and opened more room on the upside. So, the scrip can be bought for short-term holding.
The scrip, which was in a sell trend between March and May last year, reversed direction after marking a low of ₹295.5. Since then, the stock has been gaining steadily with some intermittent price corrections. Indicating a good upward momentum, it has been bouncing off the 21-day moving average consistently.
The rally continued and after reaching ₹750 last week, the stock began to consolidate. That is, it was largely fluctuating within the price levels of ₹738 and ₹755. On Tuesday, the stock broke out of the range, opening the door for further strengthening.
Corroborating the positive view, the relative strength index and the moving average convergence divergence indicators on the daily chart remain in their respective positive territories.
Considering the above factors, traders can go long in the stock with stop-loss at ₹745. Potential target can be ₹800.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)