The short-term outlook for the stock of Sunteck Realty Ltd is bullish. The stock has risen sharply over 13 per cent so far this week.
This rally has taken the stock well above the key resistance level of ₹420, which will now act as a good resistance-turned-support. Dips to this support is likely to get fresh buyers coming into the market.
The stock can rise to ₹490-500 initially. A further break above ₹500 will then pave way for an extended rise to ₹520-530 in the coming weeks. Investors with a short-term perspective can go long at current levels. Intermediate dips below ₹430 if seen can be considered for accumulating long positions at ₹425.
Stop-loss can be kept at ₹410. Trail stop-loss to ₹455 as soon as the stock moves up to ₹475. Book partial profits (50 per cent) at ₹490 and move the stop-loss for the rest of the positions to ₹475.
The bullish view will get negated if the stock falls below ₹420. Such a fall can then drag the stock down to ₹390-370.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)