Technical Call: Jubilant FoodWorks – BUY

Long-term investors can buy the shares of Jubilant FoodWorks (₹585.10) at current levels. The downtrend that was in since November 2021 ended in March this year by making a low of ₹420.85. The strong rise since then indicates the beginning of a new long-term uptrend in this stock. After making a high of ₹715.15 last month, the share price has come down sharply by 18 per cent from there. However, this has not changed the structure on the chart. The uptrend that has been in place since March this year is still intact. The recent fall is just a correction within that. There is room for this corrective fall to extend further towards ₹550-540 in the short-term. The region between ₹540 and ₹510 is a strong support zone which can halt this fall. A fresh rise from this support zone will trigger a new leg of upmove. From a long-term perspective, Jubilant FoodWorks share price has potential to target ₹1,200 over the next two-three years. Long-term investors can buy Jubilant FoodWorks now at ₹585. Accumulate on dips at ₹550 and ₹530. Keep the stop-loss at ₹410. Trail the stop-loss up to ₹730 as soon as the stock goes up to ₹820. Move the stop-loss further up ₹980 when the price touches ₹1,100. Exit the stock at ₹1,200.