Polaris Financial Technology gained momentum and surged 5 per cent with above-average volume on Friday. This rally has decisively surpassed an immediate resistance as well as 21-day moving average at Rs 135. Taking support at Rs 100 in July- August 2013, the stock started to trend upwards. The stock is in a medium-term uptrend. As long as it trades above Rs 124, the medium-term uptrend faces no threat. The stock is hovering well above its 50- and 200-day moving average.

The recent rally indicates that the stock has resumed its medium-term uptrend. The relative strength index in the daily chart has entered the bullish zone from the neutral region. The weekly RSI is on the brink of entering the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators are featuring in the positive area, implying buying interest. The short-term outlook is bullish for the stock. Traders with a short-term perspective can buy the stock with a stop-loss at Rs 137. Targets are Rs 146 and Rs 149.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on January 5, 2014)
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