Investors with a short-term perspective can buy the stock of Jyothy Laboratories at current levels

Investors with a short-term perspective can buy the stock of Jyothy Laboratories at current levels. The stock’s downtrend that started from the February peak of Rs.314 has come to a halt, finding support at the significant base level of Rs.237 in the past week. Triggered by positive divergence in the daily relative strength index and price rate of change indicators, the stock changed direction.

On Tuesday, it surged 4 per cent with above average volume, breaching its 21-day moving average. Moreover, the daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI hovers in the neutral region. The daily price rate of change indicator has entered the positive terrain showing buying interest and the moving average convergence divergence has given a buy signal. It can extend the upmove and reach the price target of Rs.260 and then to Rs.265 in the ensuing trading sessions. Buy the stock with a stop-loss at Rs.244.