The stock of Grasim Industries Ltd can be a considered for a short-term buy as the fresh breakout of a key level makes the case stronger for the bulls.
The scrip, which has been steadily gaining since August last year post the breakout of ₹650, faced a slowdown in December. That is, after registering a high of ₹954, the stock declined to ₹860 levels. But the bulls gathered strength as the stock attracted buyers due to the softening price.
Hence, the stock established another leg of rally in the last week of December that took it all the way to a fresh 52-week high – that is, it registered a new peak of ₹1,041 on Tuesday. Also, the scrip closed above ₹1,000, indicating a strong uptrend. So, it can be expected to make further gains in the upcoming sessions.
Supporting the bullish bias, the relative strength index is in the positive territory and the moving average convergence divergence indicator is charting an upward trajectory. Considering the above factors, traders can buy the stock with stop-loss at ₹1,000 for a target of ₹1,068.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)