The stock of Havells India jumped 4 per cent with above average volumes on Tuesday, conclusively breaking through a key immediate resistance at Rs.290. This gives traders with a short-term perspective an opportunity to buy the stock at current levels. Since last December, the stock has been on a sideways consolidation phase in a wide band between Rs.250 and Rs.315. In early June, the stock took support at around Rs.260 and started moving towards the upper boundary.
The stock’s recent rally has decisively breached its moving average compression (21-, 50- and 200-day moving averages) at around Rs.280, indicating signs of bullishness. Both the daily and weekly price rate of change indicators hover in the positive terrain. The short-term outlook is positive. The stock can extend its current rally and reach the price target of Rs.311 and then Rs.317 in the forthcoming trading sessions. Buy the stock with a stop-loss at Rs.292.5.
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