Century Enka, that surged 5.7 per cent with above average volumes on Thursday, has the potential to move higher in the short-term. Investors with a short-term perspective can buy it at current levels. The stock’s significant long-term support in the band between Rs 95 and Rs 100 arrested its intermediate-term downtrend during March and August. Since then, the stock has been on a medium-term uptrend, forming higher peaks and troughs. Following a minor corrective decline, the stock resumed its uptrend last week. It is now hovering well above its 50- and 200-day moving averages. The recent surge has helped it breach a key resistance at Rs 150 and hit a new 52-week high. The indicators on the daily chart are featuring in the positive territory implying upward momentum. The daily moving average convergence divergence indicator has signalled a buy. The indicators on the weekly chart are hovering in the bullish zone backing the uptrend. Short-term outlook is bullish for Century Enka. Buy it while retaining a stop-loss at Rs 154.5. Near-term targets are Rs 164.5 and Rs 168.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)