EID Parry India gives trendline breakout

Considering the daily timeframe, the stock of EID Parry India Limited has given a breakout of downward sloping trendline resistance, formed by connecting swing highs since August 2020.

Along with this trendline breakout, the stock has also managed to close above the upper Bollinger band and started the band walk, which is a very bullish sign. Further, the breakout is supported by a robust volume of nearly the double of 50-day average volume, indicating a strong buying interest by the market participants.

The stock's relative strength index (RSI) has reached its highest value in the last 14-days, which is bullish. Also, it has managed to close above the 60 mark after a span of 24 trading sessions. The stock is trading above all the 12 short and long-term moving averages. The averages are all trending up, and they are in a sequence. Moreover, the daily MACD stays bullish as it is trading above its zero line and signal line.

Going ahead, the 20-day EMA level is likely to act as strong support for the stock, which is currently placed at Rs 292.30 level. While on the higher side, the prior swing high of Rs 315 will be the immediate hurdle for the stock.

On Monday, the stock of EID Parry India closed at Rs 310.20 per share, surged by 6.20 per cent. The stock opened at Rs 297 per share and hit an intraday high of Rs 312.50 and a low of Rs 295.05 per share on NSE.