The outlook for Blue Star is bullish. The stock surged over 9 per cent last week and closed on a strong note. The rise last week has confirmed an inverted head and shoulder – a bullish pattern on the chart. The neckline support of this pattern is around ₹1,800. Fresh buyers are likely to emerger around this support and limit the downside.
A fall below ₹1,800 is less likely now. Blue Star share price can rise to ₹2,050-₹2,100 and even higher in the coming weeks. Traders can go long now at ₹1,888. Accumulate on dips at ₹1,830. Keep the stop-loss at ₹1,740. Trail the stop-loss up to ₹1,920 as soon as the stock goes up to ₹1,980. Move the stop-loss further up to ₹2,010 when the price touches ₹2,060. Exit the longs at ₹2,100.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)