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We recommend a buy in the stock of Delta Corp from a short-term perspective. It is evident from the charts of the stock that following a medium-term downtrend from its February 2012 peak of Rs 87, the stock took support at its long-term base level around Rs 53 in the previous week. This base level cushioned the stock from declining further. However, the stock changed its direction, triggered by positive divergence in daily relative strength index and daily price rate of change indicator.
The stock has been moving higher for the past three trading sessions. On Thursday, the stock jumped five per cent penetrating its medium-term downtrend-line as well as 21-day moving average conclusively. The daily RSI is inching higher in the neutral region towards bullish zone and weekly RSI has entered into the neutral region from the bearish zone.
Further, daily price rate of change indicator has entered into the positive terrain implying buying interest. We are bullish on the stock from a short-term perspective. We anticipate its up move to continue and touch our price target of Rs 63.5 or Rs 65.5 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 59.5.
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