Investors with a short-term horizon can buy the stock of Amrutanjan Health Care, pioneers of pain and congestion management company. The stock found support around Rs 100 in late August and early September, following an intermediate-term downtrend. Subsequently, the stock changed its trend. This reversal was backed by a positive divergence in the daily indicators. Since then, the stock has been on a medium-term uptrend.
After repeatedly testing the key resistance at Rs 126 for past three week, the stock broke through its emphatically on December 24. It surged 5 per cent accompanied by above average volumes on that session. Last week, the stock breached its 50- as well as 200-day moving average lines and hovering well above them. The indicators on the daily chart are featuring in the bullish zone implying upward momentum. Indicators on the weekly chart have also entered the positive territory signifying positive momentum. Short-term outlook is bullish for the stock. Buy the stock while maintaining a stop-loss at Rs 128. Short-term targets are Rs 136.5 and Rs 139.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)