Buy Delta Corp at current levels. The stock took support

Buy Delta Corp at current levels. The stock took support at around Rs 44 in July and bounced back. Since then, it has been on a medium-term uptrend, forming higher peaks and troughs. In early October, the stock resumed this medium-term uptrend after taking support at Rs 60. The short-term trend is also up.

On Monday, the stock jumped 6 per cent with extraordinary volume, conclusively breaching the key resistance at around Rs 71. The stock is now trading well above its 50- and 200-day moving averages. The relative strength index (RSI), is a technical indicator that measures the stock's recent trading strength. The RSI is featuring in the bullish zone indicating strength in the current up-move.

The daily moving average convergence divergence indicator has signalled a buy and is now hovering in the positive territory. The stock’s short-term outlook is bullish. It has the strength to move up and reach the price target of Rs 78.5 or Rs 80 in the upcoming trading sessions. Traders with a short-term perspective can buy it with a stop-loss at Rs 74.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

(This article was published on October 14, 2013)
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