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On Wednesday, the stock of Datamatics Global Services surged 12 per cent accompanied by extraordinary volume. This rally has decisively breached a key resistance at ₹90 and offers a trading opportunity for traders with a short-term perspective. Moreover, the stock has emphatically surpassed its 21- and 50-day moving averages and hovers well above these levels. The stock, which was in a sideways consolidation phase over the past five months, now appears to have resumed its intermediate-term uptrend.
The relative strength index on the daily chart has entered the bullish zone from the neutral region and the weekly RSI has also followed suit, indicating upward momentum. The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive territory. Further, buying interest is visible as the price rate of change indicator features in the positive terrain. The stock can continue its bullish momentum and reach our price target of ₹97 and ₹99 in the upcoming sessions. Buy the stock with a stop-loss at ₹91.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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