The stock of EID Parry has been in a long-term uptrend. The latest leg of the rally started in April this year on the back of the support at ₹540. But since mid-June, the stock traded in the sideways band of ₹745 and ₹850. Within these boundaries, there is a resistance at ₹800. This week, the stock moved above this level, allowing it to retest the range top of ₹850.
Although the price dropped on Thursday, the scrip stays above ₹800 and is likely to touch ₹850 soon. So, traders looking for short-term opportunities can buy EID Parry now at ₹807. Place a stop-loss at ₹790. When the stock touches ₹835, tighten the stop-loss to ₹810. Book profits at ₹850.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)