The stock of Welspun Enterprises surged 5.4 per cent with above average volume on Thursday, strengthening the short-term uptrend that has been in place since the stock took support at ₹95 in mid-April. Investors with a short-term horizon can buy the stock at current levels.
Since the stock found support at ₹33 in March 2020, the stock has been in an intermediate-term uptrend. Medium-term trend is also up for the stock.
With the recent rally, the stock has altered the previous corrective downtrend and appears to be resumed the medium term uptrend. The stock trades well above the 21- and 50-day moving averages. The stock has advanced over 9 per cent this week. Both the daily and the weekly relative strength indices have entered the bullish zone from the neutral region. There has been an increase in volume over the past two trend sessions.
The stock has potential to hit the short-term price targets of ₹123 and ₹125. Traders can buy the stock with a stop-loss at ₹115 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)