We recommend a buy in the stock of Amar Remedies from a short-term perspective. It is evident from the charts of the stock that since bottoming out in August 2011 at the low of Rs 86, the stock has been on an intermediate-term uptrend, forming higher peak and troughs.
The stock took base from a twin support, (a key level and up trendline) at around Rs 140 in mid-March and resumed its uptrend. Short-term trend has been up since then. Further, reinforcing the uptrend, it jumped 3.3 per cent breaching its 21- and 50-day moving averages on Thursday. The daily relative strength index is on the brink of entering into the bullish zone from the neutral region while its weekly RSI is already featuring in this zone.
We are bullish on the stock from a short-term horizon. We expect its up move to continue and touch our price target of Rs 158 or Rs 163 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 149.