The stock of Sadbhav Engineering which is reversing higher after taking support at a key base level of ₹210 extended its rally on Thursday. It gained 3 per cent accompanied by above average volumes, conclusively breaching its 21- and 50-day moving averages. Investors with a short-term perspective can consider buying the stock at current levels. After forming a strong base around ₹210, the stock has started trending northwards. The relative strength index on the daily chart has entered the bullish zone from the neutral region. The weekly RSI continues to feature in the bullish zone backing the medium-term uptrend.

Both the daily and weekly price rate of change indicators are hovering in the positive territory implying buying interest. The short-term outlook is bullish for the stock. It can extend its ongoing rally and reach our price target of ₹241 and ₹245 in the coming trading sessions. Buy the stock with a stop-loss at ₹226.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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