Trade Idea of The Day - Blue Star Ltd Target Rs.50 - Religare Broking Ltd
Blue Star Ltd
BUY 27 OCT 1600 CALL SELL 27 OCT 1680 CALL Entry Range 22 – 26 Target 50 Stop Loss 12
Rationale
• BLUESTARCO has witnessed a bullish breakout above its falling trendline resistance, signaling a potential trend reversal after an extended corrective phase. The stock has reclaimed its long-term average of the 100-DEMA, indicating improving buying interest and a possible continuation of the recovery momentum.
• On the technical front, the stock is trading above its 20-DEMA and 50-DEMA, indicating strengthening short-term momentum, while sustained trading above the breakout zone could reinforce the bullish structure.
• The 14-Day RSI is hovering near the 60 mark, reflecting improving strength without entering overbought territory. Additionally, the MACD histogram trades in a positive trajectory with the bullish crossover, supporting the possibility of further upside in the near term.
• In the upcoming sessions, 1,600-1,580 range is likely to act as an immediate support zone, with the buy-on-dip approach stock has potential to retest its immediate resistance zone aligned with the 1,680-1,700 zone.
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SEBI Registration number is INZ00017433
