Investors with short-term perspective can consider buying the stock of Polaris Financial Technology. It is apparent from the charts of the stock that following a medium-term downtrend from its March peak at Rs 175, the stock found base just above the psychological support level at Rs 100 in late May. The stock subsequently reversed direction and is on a nascent short-term uptrend.
In early June, it conclusively breached its key resistance at Rs 115. On Wednesday, strengthening the uptrend, the stock rose 5.4 per cent with above average volumes. The stock's up move has emphatically breached its 50-day moving average and it is currently trading well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone and weekly RSI is inching higher in the neutral region. The daily moving average convergence divergence indicator is moving higher in line with the stock price and is likely to enter the positive territory indicating upward momentum.
We are bullish on the stock from a short-term perspective. We anticipate its up move to carry on and reach our price target of Rs 130.5 or Rs 134.5 in the approaching trading sessions. Traders can consider buying the stock with stop-loss at Rs 123.