We recommend a buy in the stock of Aegis Logistics from a short-term horizon. It is seen from the charts of the stock that, since peaking out from its all-time high of Rs 416 in October 2010, it was on a long-term downtrend until January 2012 low of Rs 100. The stock took support at its long-term base level at Rs 100, which is also a psychological support. Helped by positive divergence in daily relative strength index, the stock changed its trend in early January. Since then, it has been on a medium-term uptrend.

While trending higher, the stock conclusively penetrated its long-term downtrend line in mid-January. Following a brief sideways movement, the stock jumped eight per cent accompanied with above average volume reinforcing the bullish momentum on Thursday. The stock is hovering above both 21- and 50-day moving averages. The daily RSI has entered into the bullish zone from the neutral region and weekly RSI is inching higher in the neutral region towards the bullish zone.

Both daily and weekly price rate of change indicators are featuring in positive terrain implying buying interest. We are bullish on the stock from a short-term horizon. We anticipate its up move to continue and reach our price target of Rs 180.5 or Rs 186 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 170.

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