The outlook is bullish. The stock has formed an inverted head and shoulder bullish reversal pattern. The strong 8 per cent surge on Wednesday breaking above the resistance at ₹418 confirms this pattern. The level of ₹418 will act as a strong support. Intermediate dips are likely to get fresh buyers near this support. Vardhman Textiles share price can rise to ₹455-460 over the next two-three weeks. From a slightly wider time frame of two-three months, the stock has potential to target even ₹490 on the upside.
Traders can go long now. Accumulate on dips at ₹420. Keep a stop-loss at ₹410 initially. Trail the stop-loss up to ₹433 as soon as the stock moves up to ₹440. Move the stop-loss up to ₹442 when the price touches ₹448. Exit the longs at ₹455.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.