Investors with a short-term perspective can buy the stock of Jyothy Labs at current levels. On Monday, the stock advanced 3.8 per cent accompanied by above average volume, conclusively breaching a near-term resistance at ₹120 as well as the 21-day moving average. The stock trades well above its 21- and 50-day moving averages implying bullish momentum.
With the recent rally, the stock appears to have resumed its medium-term uptrend that has been in place since it took support at ₹86 in late March this year. The medium-term uptrend-line has been intact since March low. The near-term trend is also up now. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI charts higher in the neutral region towards the bullish zone. Besides, the daily as well as the weekly price rate of change indicators are featuring on the positive terrain implying buying interest. Overall, the short-term outlook is bullish for the stock and it has potential to continue to trend upwards and reach the price targets of ₹131 and ₹134 in the coming trading sessions.
Traders with a short-term view can buy the stock with a stop-loss at ₹122.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)