Short-term traders can look to buy the stock now for a possible target of Rs 2,900-3,000 in the next 3-4 weeks, suggest experts.
The stock moved in a narrow range since June 2023 where Rs 2,500 acted as a stiff resistance while on the downside levels above Rs 2,000 acted as a support.
SRF rose more than 7% in a month and over 1% on Thursday which helped the stock to break above Rs 2,500 which was acting as a stiff resistance. The stock closed at Rs 2,557 on 28 March 2024.
In terms of price action, the stock is now trading well above most of the crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
The stock has been in an uptrend after bottoming out above 2200 levels in January 2024. It has been making higher highs and higher lows on the weekly charts.
The daily relative strength index (RSI) is at 64.3. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal line, this is a bullish indicator.
“SRF is in consolidation mode and gave a breakout above the resistance zone of the Rs 2,500 level of the falling wedge on the weekly chart,” Shilpa Rout, AVP – Derivatives Research, Prabhudas Lilladher, said.
“SRF futures saw a long buildup in the April series, with an OI of 8.3%. Option chain suggests 2,600 CE writers have the highest OI and are aggressively active, with more than 4.5 lakh OI and 2,500 PE writers holding maximum exposure for the April series,” she said.
“With the support of Rs 2,400, one can go long in this counter for an upside target of Rs 2,850–3,000 in the next one month,” recommended Rout.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
