Technical Call: Granules India – BUY

Investors with a minimum time frame of one year can buy the shares of Granules India (₹392.70). The stock surged over 20 per cent last month. This has taken the share price well above the key resistance level of ₹360. It also marks the end of the shallow downtrend since December 2020. The moving average indicators on the short-term charts are giving out positive signals. They indicate that the downside could be limited, and dips will likely be bought. That also strengthens the bullish case for the stock. The region between ₹360 and ₹340 will be the first support zone. Below that ₹310-300 is the next significant one. We can expect the downside to be limited to ₹360 itself going forward. Granules India’s share price can rise to ₹600-630 over the next six quarters. Long-term investors can buy Granules India now. Accumulate on dips at ₹370. Keep a stop-loss at ₹280. Trail the stop-loss up to ₹440 as soon as the stock price moves up to ₹510. Move the stop-loss further up to ₹490 when Granules India’s share price touches ₹560. Exit the shares at ₹600. 

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