[Premium] Trade Of The Week

Dabur India has been range-bound all through 2020 and has finally broken out of this sideways move.

Dabur has not participated in the FMCG sector move so far and seems ready for its next leg up. The stock has held its ground above the breakout level with RSI indicating bullish momentum in the current set-up. The 200-DMA is sloping slightly higher as well.

We are bullish above our risk management level of 520, which as the chart suggests has been a level of high overhead supply in the past. With this level taken out, the next level to track is 610.

Click on chart to enlarge view.

Relative to Nifty 500 as well, Dabur is bouncing from long-term support, indicating a good move in the stock going forward.

As can be seen from the charts above, Dabur is strong on an absolute as well as a relative basis and we are bullish on this stock above 520, with a target of 610.

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Allstarcharts Team