The shares of Jubilant Life Sciences surged 3.4 per cent on Tuesday. This stock is showing a divergence in performance against the Sensex. Throughout last week, it traded in a narrow range of ₹165 and ₹176 when the Sensex surged to test 25,000 levels. Now, when the index is range bound, the stock has rallied 9.4 per cent so far this week.
The outlook is bullish and short-term traders can go long in the stock. A bullish inverted head and shoulder pattern is visible on the daily candle stick chart. The stock closed above the neckline of this pattern on Tuesday. The neckline support is at ₹181. The stock can immediately rise to ₹187.6, the 200-week moving average. A breach of this level can take the stock higher to ₹210, the target of the inverted head and shoulder pattern.
Short-term traders can buy the stock with a stop-loss at ₹180 for a target of ₹187.*To get the password for buy calls, please subscribe to this blog. You will receive the password in next email to you*