The outlook for the stock of Delta Corp is bullish. The stock surged 4 per cent on Monday breaking above a key near-term resistance levels of ₹337 and ₹342. It also made a new high of ₹351.95 and has closed around it on a strong note. This marks the resumption of the short-term uptrend that has been in place since December 2017. The level of ₹342 will now serve as a good short-term support and limit the downside. Dips to this support level may find fresh buyers coming into the market.
The stock is now in an uncharted territory and the upside is open for a rally to ₹400 or even higher levels as long as the broader markets remain positive. Short-term traders can go long. Accumulate longs at ₹343 with a stop-loss at ₹333 for the target of ₹390. Revise the stop-loss higher to ₹355 as soon as the stock moves up to ₹362. The stock will come under pressure only if it declines below ₹330 decisively. The ensuing targets are ₹315 and ₹300. But such a strong pull-back move looks less probable at the moment.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)