Investors with medium-term perspective can consider buying the stock of Redington India. It has been on a steady intermediate-term uptrend from its all-time low of Rs 80 recorded in late February. Moreover, the stock’s medium-term trend is also up since July low of Rs 200. It is trading well above its 21- and 50-day moving averages. We notice that the stock’s weekly price pattern formation signifies bullishness. The daily relative strength index has just entered in to the bullish zone and weekly (RSI) is featuring in this zone. Both the daily and weekly moving average convergence and divergence indicators are hovering in the positive territory with signs of optimism.
We believe that in the medium-term the counter has the prospect of trending upward until it meets our price target of Rs 355, with a likely pause around Rs 310. Investors can buy while maintaining medium-term stop-loss at Rs 249. Short-term traders can buy with a target of Rs 312 and Rs 271 as stop.