The uptrend in the stock of Mishra Dhatu Nigam has gained momentum. The stock surged over 9 per cent on Tuesday breaking above the crucial resistance level of ₹215. This confirms an inverted head and shoulder pattern on the daily chart. The neckline support of this pattern is coming around ₹215. Hence, any fall from here will be limited to ₹215. Dips to this support is likely to see fresh buyers coming into the market.
Mishra Dhatu Nigam share price can now target ₹260 over the next three-four weeks. Traders can go long now and accumulate on dips at ₹218. Stop-loss can be kept at ₹205. Trail the stop-loss up to ₹230 as soon as the stock touches ₹238. Move the stop-loss further up to ₹240 when the price touches ₹247. Exit the long positions at ₹255.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)