Amtek Auto vroomed forward in muhurat session on Sunday, gaining 7.5 per cent. It is one of the world’s largest global forging and integrated machining companies. Investors with a short-term perspective can buy the stock at current levels. Following a medium-term downtrend, the stock was moving in a sideways range of Rs 60-70 for more than three months. The upper level of this band was breached during Sunday’s muhurat trade. The stock has also managed to move past its long-term moving average line, reinforcing the bullish momentum.
Momentum indicators on the daily chart have entered the bullish zone from the neutral region. The daily moving average convergence divergence indicator has signalled a buy and is moving higher in line with the stock price. Indicators on the weekly chart are hovering in the neutral region with a positive bias. As the stock has moved out of a sideways trading range with good volumes, it has the potential to extend this current rally. Short-term targets are Rs 74.5 and Rs 76. Buy the stock while maintaining a stop-loss at Rs 69.5.
BL Research Bureau
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)