The stock of Granules India, which was moving in a sideways trend, broke out of the range on Tuesday, opening the door for further appreciation. Hence, traders looking for short-term opportunities can consider buying the stock.
The scrip lost about 35 per cent in March as the broader market faced significant sell-off. Consequently, the stock marked a low of ₹114 in late March. However, it was quick to turn around and soon establish an uptrend. As a result, the stock advanced and touched ₹400 in late September.
But following this, the stock entered a consolidation phase and was largely fluctuating within ₹370 and ₹400. Nevertheless, the uptrend seems to have picked up steam this week. On Monday, the stock broke out of ₹400 and marked a fresh lifetime high of ₹420.
Substantiating the uptrend, the daily relative strength index is showing a fresh uptick and the moving average convergence divergence indicator on the daily chart has turned its trajectory upwards. Hence, traders can be bullish and buy the stock with stop-loss at ₹400 for a target of ₹450.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)