We recommend a buy in the stock of Delta Corp from a short-term perspective. It is apparent from the charts of the stock that it took support from its significant long-term base zone between Rs 52 and Rs 54 in late July this year and started moving higher. Since then, the stock has been on a medium-term uptrend. However, following a near-term correction, the stock appears to have resumed its medium-term uptrend. On Friday, the stock rose 3 per cent with extraordinary volume, breaching its immediate resistance at Rs 73. We observe that there is an increase in volume in the last two trading sessions. The stock is hovering well above its 50- and 200-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is on the brink of entering this zone from the neural region. Both daily as well as weekly moving average convergence divergence indicators are featuring in the positive terrain implying buying interest. Our short-term outlook on the stock is bullish. We anticipate its rally to prolong and reach price target of Rs 78 or Rs 79.5 in the forthcoming sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 73.

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