Dabur India gives consolidation breakout

The stock of Dabur India Limited has given a consolidation breakout on the daily time frame along with relatively higher volumes. Additionally, the stock has formed a sizeable bullish candle on the breakout day, adding strength to the breakout.

Along with this breakout, the stock has also managed to close above its long and short-term moving averages, i.e. 20-day EMA, 50-day EMA, 100-day EMA and 200-day EMA. The stock's relative strength index (RSI) has given a downward sloping trendline breakout, which is also a bullish sign. The daily MACD stays bullish, as it is trading above its zero line since the last four trading sessions.

Ichimoku chart on 60-minute time frame is clearly giving a positive view as it closed above the KS and TS lines. Another important aspect is that the KS line crossed above the TS line, which is also a bullish sign. 

Going ahead, we expect the bias to remain positive as long as the stock sustains above Tuesday’s low of Rs 434.40 level. On the higher side, the level of Rs 495, followed by Rs 514, would be seen as the next resistance zone for the stock.

On Tuesday, the stock of Dabur India closed at Rs 477.55 per share, surged by 10.92 per cent. The stock opened at Rs 446.85 per share and hit an intraday high of Rs 489 and a low of Rs 434.40 per share on NSE.