McNally Bharat has been on a nascent short-term uptrend since taking support at ₹48 in late February. Investors with a short-term horizon can buy the stock at current levels for short-term gains. In early March, the stock decisively breached its medium-term downtrend line and started moving sideways, hovering around the 200-day moving average. On Wednesday, the stock emphatically broke through its immediate key resistance at ₹54 as well as the 200-day moving average gaining 5 per cent. With this rally, the stock appears to have resumed its short-term uptrend.
The relative strength index on the daily chart has entered the bullish zone from the neutral region. The weekly RSI is moving higher in the neutral region. Its short-term outlook is bullish. It can extend the upmove and reach the price target of ₹58 and then ₹59.5 in the ensuing trading sessions. Buy the stock while maintaining a stop-loss at ₹54 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)