We recommend a buy in the stock of Aegis Logistics from a short-term perspective. It is apparent from the charts of the stock that following an intermediate-term downtrend from its February 2012 peak of Rs 183, it found support around Rs 110 in late July. This level is a significant long-term base for the stock. But the stock changed its trend backed by positive divergence in daily moving average convergence divergence indicator. Since then, the stock has been on nascent short-term uptrend.
On Thursday, the stock gained four per cent breaching its immediate resistance at Rs 124. We notice that there is an increase in daily volumes over the past three trading sessions. Moreover, the stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone and weekly RSI is moving higher in the neutral region towards the bullish zone. The daily MACD has signalled a buy and is about to enter positive territory. Further, daily price rate of change indicator is featuring in positive terrain indicating buying interest.
We are bullish on the stock from a short-term perspective. We expect its up-move to continue and hit our price target of Rs 131.5 or Rs 134 in the forthcoming weeks. Traders with short-term horizon can buy the stock with stop-loss at Rs 123.5.