We recommend a buy in the stock of Atlanta from a short-term horizon. It is evident from the charts of the stock that it peaked out in mid of April, after registering a high of Rs 133. The stock fell sharply thereafter until it found support at its longer-term base level of Rs 70 in late May. It changed its trend triggered by positive divergence in daily relative strength index, also backed with key support level. Further, last week the stock took support around Rs 70 and started to move higher.

Since late May, the stock has been on a short-term uptrend. It surged five per cent with penetrating its immediate resistance at Rs 78 on Thursday. We notice that there has been an increase in volumes in the past three trading sessions. The stock is trading well above its 21- and 50-day moving averages. The daily RSI is featuring in the bullish zone and weekly RSI is heading towards this zone in the neutral region. Daily moving average convergence divergence indicator is inching higher in line with the stock price and is on the brink of entering into the positive territory.

We are bullish on the stock from a short-term perspective. We anticipate the up move to continue until it reaches our price target of Rs 86 or Rs 88 in the days ahead. Traders can consider buying the stock with stop-loss at Rs 80.5 levels.

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