Investors can buy HEG for short-term trading. The stock’s downtrend from its December 2012-peak halted at the significant long-term support at Rs 145 in early August 2013. It reversed upward thereafter and a nascent short-term uptrend has been in progress since this low. While moving higher, the stock decisively breached its 21- and 50-day moving averages. It is currently trading well above these lines.
The stock recorded a strong rally on Thursday, gaining almost 3 per cent in this session. Volume was also strong during this rally. The short-term hurdle at Rs 160 has been breached in this session. The stock has gained 6 per cent over the week, reinforcing bullish momentum.
The daily momentum indicators are now hovering in the positive zone. The price rate of change indicator in the daily chart is also above the neutral zone, signalling a positive short-term view. The stock can rally to Rs 171.5 or Rs 175 in the approaching trading sessions. It can be bought with a stop-loss at Rs 161.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)