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We recommend a buy in Voltas from a short-term perspective. From the charts of Voltas we see that it we see that it was on an intermediate-term downtrend from its January high of Rs 261 to its July low of Rs 114. However, the stock found support at around Rs 120 level in early July, which is a significant long-term support level. Since then the stock has been gradually trending up. The stock’s reversal has been triggered by positive divergence in the daily moving average convergence and divergence (MACD) and the weekly relative strength index (RSI).

Recently the stock penetrated the intermediate-term down trend-line. We observe that there is an increase in volume over the past 3 trading sessions. The daily RSI is featuring in the bullish zone and the weekly RSI has entered in the neutral region from the bearish zone. Our short-term outlook of the stock is bullish.

We anticipate the stock to move up until it hits our price target of Rs 156 in the forthcoming trading sessions. Traders with short-term perspective can initiate buy in the stock while maintaining stop-loss at Rs 130.

Yoganand D.

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