The short-term outlook for Thermax is bullish. The stock surged about 4.9 per cent on Friday and has closed on a strong note. This rise has taken the share price well above a key resistance level of ₹5,300. It also indicates that a new leg of upmove has begun. The level of ₹5,300 will now act as a good resistance-turned-support. It will also limit the downside if there is an intermediate dip in the coming days. Thermax share price can rise to ₹5,850 in the next few weeks. Traders can go long now at ₹5,431.
Accumulate on dips at ₹5,330. Keep the stop-loss at ₹5,125. Trail the stop-loss up to ₹5,510 as soon as the stock moves up to ₹5,630. Move the stop-loss further up to ₹5,680 when the price touches ₹5,740. Exit the long positions at ₹5,840.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)