Aptech, a premier IT education institute, surged 4 per cent with good volume on Wednesday. This rally has reinforced the stock’s short- as well as medium-term uptrend. Since March 2013 low of Rs 40, the stock has been on a long-term uptrend forming higher peaks and troughs. In September 2013, the stock decisively breached its 50- and 200-day moving averages and is currently trading well above them. Further, the stock has conclusively surpassed its long-term resistance at Rs 80 in early January, strengthening the long-term outlook. The relative strength index on the daily chart has re-entered the bullish zone from the neutral region.

Both daily and weekly price rate of change indicators are hovering in the positive area implying buying interest. With the stock’s medium-term uptrend line intact, its outlook is bullish. It can continue its rally and reach the price target of Rs 89 and then to Rs 91 in the approaching trading sessions. Traders with a short-term perspective can consider buying the stock with a stop-loss at Rs 83.7.

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

(This article was published on January 15, 2014)
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