Investors with a short-term perspective can buy the stock of Rolta India at current levels. The stock zoomed 6 per cent accompanied by extraordinary volume on Tuesday. This rally has decisively breached its 21- and 50-day moving averages at ₹67. Since taking support at ₹62 in late January, the stock has been on a short-term uptrend. This uptrend is backed by good volumes.
The stock appears to have resumed its medium-term uptrend. The relative strength index on the daily chart has entered the bullish zone from the neutral region and weekly RSI is on the brink of entering this zone. The daily moving average convergence divergence indicator has signalled a buy. Both daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest.
The short-term forecast is bullish for the stock. The stock’s present rally is likely to continue and reach the price target of ₹74.5 and then ₹76 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹69.8 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)