Buy on the stock of Dishman Pharmaceuticals and Chemicals from a short-term horizon. It is apparent from the charts that since its March low of Rs 87 (52-week-low), the stock has been on an intermediate-term upturn. After encountering resistance around Rs 200 in late May, it has been in a medium-term sideways consolidation. The stock, which had formed a symmetric triangle pattern since late June, broke out of the pattern conclusively on August 5. We have noticed above average volumes over the past six trading sessions. Moreover, the stock breached resistance at Rs 200 and is trading well above its 21- and 50-day moving averages. Both the daily and weekly relative strength index (RSI) have entered the bullish zone from the neutral region. The daily moving average convergence and divergence indicator signals a buy. Our short-term outlook on the stock is bullish. We expect it to move up until it hits our price target of Rs 225. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 193.buy on the stock of Dishman Pharmaceuticals and Chemicals from a short-term horizon. It is apparent from the charts that since its March low of Rs 87 (52-week-low), the stock has been on an intermediate-term upturn. After encountering resistance around Rs 200 in late May, it has been in a medium-term sideways consolidation. The stock, which had formed a symmetric triangle pattern since late June, broke out of the pattern conclusively on August 5. We have noticed above average volumes over the past six trading sessions. Moreover, the stock breached resistance at Rs 200 and is trading well above its 21- and 50-day moving averages. Both the daily and weekly relative strength index (RSI) have entered the bullish zone from the neutral region. The daily moving average convergence and divergence indicator signals a buy. Our short-term outlook on the stock is bullish. We expect it to move up until it hits our price target of Rs 225. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 193.
source: BL
source: BL
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