Investors with a short-term perspective can consider buying the stock of Asahi India Glass at current levels. Since taking support at ₹30 in August 2013, the stock has been on a long-term uptrend registering higher peaks and troughs. Medium- and short-term trends are also up for the stock. Following a corrective decline, the stock found support at ₹71 in late June and resumed its primary uptrend. In the last two trading sessions, the stock has gained 15 per cent with above average volumes, conclusively breaching its immediate resistance level of ₹80. The stock is hovering well above its 21- and 50-day moving averages. With its current rally, the stock’s daily indicators have entered the bullish zone from the neutral region.
The daily moving average convergence divergence indicator has signalled a buy. Our short-term forecast on the stock is bullish. It can continue its upmove and reach our price target of ₹87.5 and ₹89.5 in the coming trading sessions. Buy the stock with a stop-loss at ₹82.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)