CCL Products India

We recommend a buy in CCL Products India from a short-term perspective. It is apparent from the charts of the stock that since March low of Rs 51, it has been on an intermediate-term uptrend, shaping higher peaks and troughs. While trending upward, the stock surpassed key hurdles, resistance at Rs 100, down trendline around Rs 110 and another resistance at Rs 140. Subsequently, Rs 140 turned into key support level, in mid August the stock took support from this level and resumed upward. On October 15, the stock jumped 10 per cent breaking through its 21-day and 50-day moving averages, accompanied with good volume. With this the daily relative strength index (RSI) has entered into the bullish zone and weekly RSI also re-entered in to this zone. The daily moving average convergence and divergence (MACD) indicator has signalled a buy and is hovering in the positive territory. Our short-term outlook on the stock is bullish. We anticipate it to move up further until it hits our price target of Rs 188 in the forthcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 162.

via BL