The short-term outlook for Bombay Dyeing & Manufacturing Company is bullish. The stock has been in a strong uptrend since April this year. On Tuesday, the stock surged over 9 per cent marking the beginning of a new leg of upmove within the broader uptrend. Support for the stock is at ₹140-138.
Any intermediate dips towards supports are likely to get fresh buyers. As such a fall below ₹138 is unlikely at the moment. Bombay Dyeing share price can rise to ₹165-170 over the next two-three weeks. Traders can go long at current levels. Accumulate on dips at ₹140. Keep the stop-loss at ₹133. Trail the stop-loss up to ₹153 as soon as the stock moves up to ₹157. Move the stop-loss further up to ₹158 vwhen the price touches ₹161. Exit the long positions at ₹165.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)