The short-term outlook is bullish for Divi’s Laboratories. The stock has moved up very well over the last couple of days after taking support from the 200-Day Moving Average (DMA). This 200-DMA support is at ₹5,407.
The bounce from this support looks strong. That indicates the presence of strong follow-through buyers. So, any intermediate dips are likely to see fresh buyers coming in to the market and limit the downside.
Divi’s Laboratories share price can rise to ₹6,065 in the coming weeks. Traders can go long now at ₹5,665. Accumulate on dips at ₹5,540. Keep the stop-loss at ₹5,345 initially. Trail the stop-loss up to ₹5,720 as soon as the stock goes up to ₹5,840. Move the stop-loss further up to ₹5,880 when the share price touches ₹5,940. Exit the long positions at ₹6,060.
Note: The recommendations are based on technical analysis. There is risk of loss in trading
