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Investors with short-term perspective can consider buying the stock of Aptech. It is apparent from the charts of the stock that it has been in a broad sideways consolidation in the range between Rs 65 and Rs 80, since taking support at Rs 65 in May 2012. The stock took support from the lower boundary at Rs 65 in early November and started moving higher triggered by positive divergence in daily indicators.
On Monday, the stock decisively broke out of a key resistance at Rs 70 by gaining 5.6 per cent accompanied by extraordinary volume. Further, the stock has breached its 21- and 50-day moving averages and is currently hovering well above them. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region towards the bullish zone. The daily moving average convergence divergence indicator is moving higher in line with the stock price and is about to enter the positive zone implying upward momentum.
Considering that the stock is reversing upward from significant support and its recent breakout, we are bullish on it from a short-term perspective. We expect its rally to prolong and reach our price target of Rs 76 or Rs 77.5 in the forthcoming trading sessions. Traders with short-term horizon can consider buying the stock with stop-loss at Rs 71.4.
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