We recommend a buy in the stock of Anant Raj Industries from a short-term horizon. It is apparent from the charts of the stock that it has been on a medium-term uptrend since taking support from its key base zone between Rs 43 and Rs 45 in early September. While trending higher, the stock emphatically breached its important resistance at Rs 75 in early October and continued its upward journey.
The stock took support around Rs 85 and bounced up 7.7 per cent with above average volumes on Wednesday. It is trading well above its 50- and 200-day moving averages. With the stock's recent up move, the daily relative strength index has entered the bullish zone from the neutral region. The weekly RSI is featuring in the bullish zone. Both daily as well as weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
The stock's medium-term uptrend line is in tact. We are bullish on the stock from a short-term perspective. We anticipate its rally to prolong and reach our price target of Rs 97 or Rs 99 in the ensuing trading sessions. Traders with a short-term perspective can consider buying the stock while maintaining stop-loss at Rs 92.