The short-term outlook is bullish for The New India Assurance Company. The stock had surged over 6 per cent on Tuesday has taken the share price above the crucial resistance level of ₹160. The region between ₹160 and ₹159 act as a very good support and limit the downside. Moving Average cross-over on the weekly chart also strengthens the bullish case.
The New India Assurance Company share price can rise to ₹180 initially and then to ₹195 eventually over the next three-four weeks. Short-term traders can buy this stock now. Accumulate on dips at ₹162. Keep the stop-loss at ₹156. Trail the stop-loss up to ₹169 as soon as the stock moves up to ₹173. Move the stop-loss further up to ₹172 when the price touches ₹177. Exit the long positions at ₹180.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)