The outlook for the stock of VIP Industries is bullish. Investors with a short-term perspective can consider buying the share at current levels. The stock surged 5.9 per cent on Monday breaking above an important resistance at Rs.110.
The stock was in a prolonged sideways move between Rs.85 and Rs.110 since November last year. Monday’s strong rally has broken this range, signalling the beginning of a fresh leg of upmove.
The level of Rs.110 will now serve as a good support. Dips to this support are likely to find fresh buying interest in this stock. A rise to Rs.120 is possible in the upcoming sessions.
Traders with a short-term perspective can go long. Stop-loss can be kept at Rs.108 for a target of Rs.119. Intermediate dips to Rs.110 can be used to accumulate. The outlook will turn negative only if the stock declines below Rs.110. But such a fall looks less probable given that the strong breakout on Monday has happened on the back of strong volumes.