[Premium] Trade Of The Week

A favorite among the investor community is Pidilite Industries. The stock has provided good returns over the past many years and has now clocked a new all-time high.

Closing near the high, the price breakout in Pidilite has been accompanied by the RSI moving into the overbought region comfortably. This alludes to good bullish momentum and strength in the stock.

With the rising 200 DMA adding to this positive sentiment, we believe the stock has the potential to move towards levels of 2,000 in the weeks and months ahead. We are positive above our risk management level of 1,600, for a target of 2,000.

Click on chart to enlarge view.

Relative to Nifty500 too, Pidilite has been a strong performer and is currently bouncing from a good area of support, even as it continues to respect its long term trendline. RSI continues to steer clear of the oversold zone, adding to the bullish momentum that can be seen in the price action.

As can be seen from the charts above, Pidilite is strong on both absolute and relative basis and we are bullish in this counter above 1600, for a target of 2000.

Thanks for reading and please let us know if you have any questions.

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Allstarcharts Team