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We recommend a buy in the stock of Amar Remedies from a short-term perspective. It is seen from the charts of the stock that from this August low of Rs 86, the stock has been on a medium-term uptrend. Following a corrective decline from the stock's November peak of Rs 137, it found support after retracing 38.2 per cent Fibonacci retracement level at Rs 118. This level is also a significant long-term support level for the stock.
On Monday, the stock zoomed nine per cent accompanied by extraordinary volume, breaching its 21- and 50-day moving averages and also its immediate resistance at Rs 125. With this up move, the stock appears to have resumed its medium-term uptrend. The daily relative strength index has entered into the bullish zone from the neutral region and weekly RSI has re-entered in to the bullish zone.
Both daily and weekly moving average convergence divergence indicators are featuring in the positive territory implying upward momentum. We are bullish on the stock from a short-term perspective. We anticipate the stock to rally higher and reach our price target of Rs 133 or Rs 139 in the impending trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 127.
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