We recommend a buy in the stock of Delta Corp from a short-term horizon. It is apparent from the charts of the stock that it has been on an intermediate-term uptrend from the February low of Rs 59. However, following a corrective decline from its July 26 peak of Rs 116, the stock found support at its long-term support band between Rs 80 and Rs 85 in late August.

The stock subsequently rebounded from this support band and it appears to have resumed its intermediate-term uptrend. On Thursday, the stock emphatically broke through its immediate key resistance at Rs 100 by jumping eight per cent. We notice that there has been an increase in volumes over the past four trading sessions.

The stock is hovering well above its 200- and 50-day moving averages. The 14-day relative strength index has entered into the bullish zone from the neutral region and weekly RSI is on the verge of entering into this zone. Daily moving average convergence divergence indicator has signalled a buy.

The daily price rate of change indicator is featuring in the positive territory and weekly indicator has also entered this territory, reinforcing the buying interest.

We are bullish on Delta Corp stock from a short-term perspective. We anticipate its upward journey to prolong until it touches our price target of Rs 109 or Rs 112 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 102.

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