The stock of Deepak Nitrite made a fresh breakout and hit a new all-time high on Tuesday and the price action on the daily chart shows that the stock can appreciate further. Hence, one can consider buying this stock.
After facing a steep fall in price in March last year, the stock reversed and established a strong uptrend, wherein it multiplied 2.5 times in 2020 and has nearly doubled this year considering Tuesday’s close of ₹1782.5. Notably, the stock entered a consolidation phase in early March. However, on Monday, it breached the resistance of ₹1,720 decisively, potentially positioning itself for another leg of uptrend.
Supporting the bullish bias, the moving average convergence divergence, which has been charting southwards, is now turning the direction upwards and the daily relative strength index is showing a fresh uptick. Also, the breakout volume is very supportive of the bullish inclination. Hence, traders can buy the stock with a stop-loss at ₹1,740; target can be ₹1,850.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)