The stock can be bought at current levels and on dips towards Rs 1,610 with a stop loss below Rs 1,535 and a target of Rs 1,850.
Vinati Organics has been in an uptrend for the last one year forming higher tops and higher bottoms on the weekly charts. The stock has been consolidating for the last eight weeks and is showing signs of a breakout on the upside.
Price has given a breakout on the upside from the Bollinger Band with the expansion of bands indicating a continuation of a trend in the direction of the breakout on the daily chart.
The stock has taken support at its 50-day moving average that has been acting as a support for the stock. The Relative Strength Index (RSI) has given a positive crossover with its average on the weekly chart.MACD line has moved above the equilibrium level of zero and is moving higher on the daily chart. Thus, the stock can be bought at current levels and on dips towards Rs 1,610 with a stop loss below Rs 1,535 and a target of Rs 1,850.
The author is Head of Technical and Derivatives at Sanctum Wealth Management.
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