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The stock of Ashoka Buildcon has been on a long-term uptrend since taking support around ₹43 in October 2013. However, encountering a key resistance at ₹155 in June 2014, it has been on a sideways consolidation phase with positive bias. The significant support zone between ₹125 and ₹130 is providing cushion to the stock. After taking support from the key support zone, the stock gained 5 per cent with good volume on Monday.
The stock’s rally has breached the 21- and 50-day moving averages. The daily and weekly relative strength indices are moving towards the bullish zone, adding strength to the progressing up move. Both the daily and weekly price rate of change indicators are featuring in the positive terrain. The short-term outlook is bullish. The stock can extend its uptrend and reach the price target of ₹144 and then ₹147 in the upcoming trading sessions. Buy the stock with a stop-loss at ₹135.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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