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We recommend a buy in the stock of Astral Poly Technik from a short-term perspective. It is evident from the charts of the stock that after marking an all-time high of Rs 194 in November 2010, it started to decline and was on a medium-term downtrend until early March 2011. But the stock found base at its long-term support around Rs 120 in early March and changed direction triggered by positive divergence displayed in the daily relative strength index and price rate of change. Since then, the stock has been on a short-term uptrend.
It penetrated its medium-term down trendline in late March and is trading well above its 21 and 50-day moving averages. Reinforcing its current uptrend, the stock surged 5 per cent accompanied by above-average volume on April 13. The daily RSI is featuring in the bullish zone and daily moving average convergence divergence indicator is also hovering in the positive territory signalling upward momentum. Price ROC is featuring in the positive territory indicating buying interest.
We are bullish on Astral Poly Technik from a short-term horizon. We expect its uptrend to prolong until it reaches our price target of Rs 150 or Rs 153.5 in the forthcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 140.
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