The short-term outlook is bullish for Elgi Equipments. The stock was up over 3 per cent on Wednesday. This rise has happened after a consolidation above the 200-day Moving Average (MA) for more than a week. In addition to this, the 21-day MA is just turning up from near the 200-day MA. This is a bullish signal indicating limited downside. Support is in the ₹500-497 region. Intermediate dips are likely to get bought around ₹500.
Elgi Equipments share price can rise to ₹550 over the next two to three weeks. Traders can go long now. Accumulate on dips at ₹505. Keep the stop-loss at ₹493. Trail the stop-loss up to ₹520 as soon as the stock moves up to ₹522. Move the stop-loss further up to ₹530 when the price touches ₹537. Exit the long positions at ₹545.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)