Allcargo Logistics, a small-cap company that provides integrated logistics solutions, offers a good short-term trading opportunity. Following the company’s strong Q3 earnings, the stock surged 3.5 per cent with a spurt in volumes on Monday. The stock has been on an intermediate- term uptrend since taking support at ₹60 in August 2013. The short-term trend is sideways with an upward bias. After the recent rally, the stock is testing the upper boundary of the sideways range at ₹137.

The stock is trading well above its 50- and 200-day moving averages. The relative strength index on the daily chart has entered the bullish zone from the neutral region reinforcing the bullish momentum. Other indicators on the daily chart are featuring in the positive terrain. Likewise, those on the weekly chart are also hovering in the positive territory backing the stock’s uptrend. Allcargo Logistics’ intermediate-term uptrend-line is also intact.

The short-term outlook for the stock is optimistic. It can extend its rally to the price target of ₹144 and to ₹146.5 in the approaching trading sessions. Buy the stock with a stop-loss at ₹135.

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

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