Lumax Auto Technologies (₹115): Buy

Yoganand D BL Research Bureau | Updated on December 08, 2020 Published on December 09, 2020

Investors with a short-term perspective can buy the stock of Lumax Auto Technologies at current levels. The stock has been in an intermediate-term uptrend since registering a 52-week low at ₹48 in late March this year. But the stock had encountered a key resistance at ₹110 in August and was on a sideways consolidation phase in the band between ₹90 and ₹110 until recently.

On Tuesday, the stock gained 11 per cent with above average volume, emphatically breaking above a key resistance and the upper boundary at ₹110. Moreover, the stock has recently surpassed the 21- and 50-day moving averages and trades well above them. With the on-going rally, the stock appears to have resumed the intermediate-term uptrend. The daily relative strength index features in the bullish zone and the weekly RSI has entered the bullish zone from the neutral region.

Besides, the daily and the weekly price rate of change indicators are featuring in the positive terrain, implying buying interest. The short-term outlook is bullish. It has potential to trend upwards and reach the price targets of ₹120 and ₹122.5. Traders can buy the stock with a stop-loss at ₹112. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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Published on December 09, 2020
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