Delta Corp spiked over 7 per cent accompanied by above-average volume on Wednesday. The rally appears to have revived the intermediate-term uptrend that has been in place from August 2013 low of ₹44. Traders with a short-term perspective can consider buying the stock at current levels.
Following a short-term corrective decline from the early January peak of ₹127, the stock found support at its medium-term significant support zone between ₹90 and ₹95 recently. Key 38.3 per cent Fibonacci retracement support is also present in this zone. Subsequently, the stock changed direction triggered by positive divergence in daily price rate of change indicator.
Moreover, the moving average convergence divergence indicator on the daily chart has signalled a buy. Both daily and weekly relative strength indices are moving higher in the neutral region towards the bullish zone. The daily as well as weekly price rate of change indicators are featuring in the positive territory implying buying interest.
The short-term outlook for the stock is bullish. It can extend its present up-move and reach the price target of ₹106 and ₹108 in the forthcoming trading sessions. Buy the stock with a stop-loss at ₹99.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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