The stock of Anant Raj has gained over 9 per cent this week. Investors can consider buying this stock at current levels. The stock has been in a sideways consolidation phase in a broad range of between ₹50 and ₹65 since December 2013. The stock’s short-term downtrend was arrested at ₹54 last week and it reversed direction.
On Wednesday, the stock rose 3.8 per cent accompanied by above average volumes, breaching its 21- and 50-day moving averages. There has been an increase in daily volumes. The stock is now hovering well above its 200-day moving average. The relative strength index on the daily chart has entered the bullish zone. The moving average convergence divergence indicator has signalled a buy. Moreover, both daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest. The short-term targets are ₹62.5 and ₹63.5. Buy the stock with a stop-loss at ₹58.3.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)