The stock of Bikaji Foods International, which has been in a downtrend between October last year and February this year, found a base at ₹580 a month ago. It has been on a recovery since then and the stock has now moved above a trendline resistance. Also, the price is above the 50-day moving average (DMA). These factors hint at a bullish reversal in trend. Considering the current price action, the stock is likely to surpass the nearest hurdle at ₹685 and appreciate to ₹740, its 100-DMA, in the short-term. Therefore, traders can buy Bikaji Foods International now at ₹680 and accumulate at ₹650. Place stop-loss at ₹625 at first. When the price rises to ₹720, revise the stop-loss to ₹690. Liquidate the longs at ₹740.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
