The stock of NMDC gained 5 per cent on Monday, accompanied by above average volume, breaking above a key short-term resistance at ₹117 that has limited the upside over the past three weeks. It provides an opportunity to buy the stock at current levels.
In late September 2020, the stock took support at ₹75 and began to trend upwards. Since then, the stock has been on a medium-term uptrend. The stock breached a key resistance at ₹100 in early December and continued to trend upwards. After a near-term sideways movement between ₹110 and ₹117, the stock has surpassed the upper boundary at ₹115 on Monday.
Moreover, the stock had emphatically breached a key long-term resistance at ₹115 and has reinforced the bullish momentum. Both medium- and short-term trends are up. The daily as well as the weekly relative strength indices are featuring in the bullish zone, backing the uptrend.
Overall, the short-term outlook is bullish. It has potential to trend upwards and reach targets of ₹127.5 and ₹130 in the coming sessions. Traders can buy the stock with a stop-loss at ₹119.5 levels. (Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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