The stock of Eveready Industries advanced 5.5 per cent with above average volume on Thursday, breaking above a key hurdle at ₹200. Since the stock took support at ₹45 in March 2020, the stock has been on a long term uptrend.
Medium as well as the short-term trends are up the stock. Following a corrective decline from early January this year, the stock took support at ₹185 in late January and reversed higher. It is currently on a near-term rally, gaining bullish momentum.
The stock has surpassed the 21- and 50-day moving averages and it trades well above them. The stock has gained 9 per cent this week. There has been an increase in volume over the past three trading sessions. The daily relative strength index has entered the bullish zone from the neutral region while the weekly RSI continues to feature in the bullish zone backing the up-move.
Further, the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest. Overall the short-term forecast is bullish for Eveready Industries.
It has potential to trend upwards and hit the price targets of ₹220 and ₹225 in the ensuing trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹207 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)