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The stock of Nilkamal spiked seven per cent on Thursday, vaulting over a key hurdle at Rs 107. This rally has created a short-term trading opportunity. Investors with a short-term perspective can consider buying the stock.
A narrow sideways movement in the range of Rs 95 and Rs 107 was confining the stock since early August. It managed to break out of this range on Thursday. There is an increase in daily volume in the past five trading sessions. The stock has also been trading well above its 21- and 50-day moving averages. The daily relative strength index is featuring in the bullish zone, supporting the uptrend. Likewise, the daily moving average convergence divergence indicator is moving higher, in line with the stock price, after displaying a positive divergence. The weekly momentum indicators are also implying buying interest. With the recent breakout, the stock can extend its up-move to the price target of Rs 120 or Rs 122 in the approaching trading sessions. It can be bought with a stop-loss at Rs 112.5 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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