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The stock of Idea Cellular climbed 5 per cent accompanied by good volume on Thursday, breaking a key resistance at ₹140. Investors with a short-term view can use this breakout as a buying opportunity.
Following an intermediate-term downtrend from the April peak of ₹203, the stock found support at a significant long-term base at ₹130 in early November. Subsequently, the stock changed direction triggered by positive divergence in the daily relative strength index and price rate of change oscillator. The recent rally has decisively breached the key resistance as well as the 50-day moving average, strengthening the uptrend. Further, the daily RSI has entered the bullish zone from the neutral region.
The ongoing rally is backed by an increase in volumes. The short-term forecast is bullish for the stock. It can extend its rally and reach the price target of ₹153 and ₹156 in the upcoming sessions. Buy the stock with a stop-loss at ₹144.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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