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We recommend a buy in C & C Constructions from a short-term trading perspective. It is evident from the charts of C & C Constructions that it had been on a medium-term downtrend from its September high of Rs 184 to October low of Rs 71 (52-week low). The stock almost tumbled 60 per cent from this peak to 52-week low. However, the stock reversed direction from its 52 week low, triggered by the positive divergence in the daily relative strength index (RSI). The stock has been on a medium-term uptrend since October low.

During early November, the stock conclusively penetrated the medium-term down trendline and breached the 21-day moving average. The daily RSI is rising in the neutral region towards the bullish zone. The stock is currently hovering around the support level at Rs 100. We are bullish on the stock from a short-term perspective.

We anticipate the stock to move upward until it hits our price target of Rs 116 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 98.

Yoganand D.

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