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The stock of Lloyd Electric & Engineering zoomed 12 per cent with extraordinary volume, breaching its 21-day moving average on Monday. Investors with a short-term perspective can buy this stock at current levels. After a medium-term downtrend from the September 2014 peak of ₹203, the stock found support in the band between ₹110 and ₹115 in late December. The stock’s 200-day moving average poised in this band also provided a base. Moreover, the daily moving average convergence divergence indicator displays positive divergence.
The daily and weekly relative strength indices are charting towards the bullish zone. The price rate of change indicators has entered the positive territory, signifying buying interest. The short-term outlook is bullish for Lloyd Electric. It can continue the rally and reach our price target of ₹140 and ₹143 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹131.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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