The short-term outlook is bullish for CESC. The stock has formed an inverted head and shoulder reversal pattern. Wednesday’s 4 per cent rise has taken the share price well above neckline resistance level of ₹144. That confirms the bullish pattern. The level of ₹144 will now act as a good support.
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Fresh buyers are likely to emerge around ₹144 and limit the downside. As such a fall below ₹144 looks less likely now. CESC share price can rise to ₹165-₹170 in the coming weeks.
Traders can buy CESC now at ₹148. Accumulate on dips at ₹145. Keep the stop-loss at ₹134 initially. Trail the stop-loss up to ₹153 as soon as the stock goes up to ₹158. Revise the stop-loss further up to ₹160 when the share price touches ₹165. Exit the long positions at ₹170.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
