Investors with a short-term perspective can buy the stock of IRB Infrastructure Developers at current levels. Following a short-term downtrend from the mid-January peak of ₹260, the stock found support at around ₹220, retracing 61.8 per cent fibonacci retracement level of the prior up move. The stock retested the key support at ₹220 last week and subsequently began to move higher.
On Tuesday, the stock gained 3.3 per cent on the back of strong buying interest with an above average volume and has breached the immediate resistance at ₹228 as well as the short-term downtrend-line. Moreover, the stock has breached its 200-day moving average and trades well above it.
The daily and weekly relative strength indices chart higher in the neutral region. The daily price rate of change indicator feature in the positive territory implying buying interest. With the breakthrough of the key resistance at ₹228, the near-term outlook is bullish for the stock. It can extend the up move and reach the price targets of ₹243 and ₹248 in the coming trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹229.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
