Today's Pick

NBCC (₹145): BUY

Yoganand D. BL Research Bureau | Updated on January 28, 2014 Published on January 28, 2014


Investors with a short-term perspective can buy National Buildings Construction Corporation (NBCC), a small-cap stock at current levels. The stock has been on an intermediate-term uptrend since the August 2013 low at ₹96. The medium-term trend is also up. However, after registering a 52-week high at ₹174, the stock went through a near-term corrective decline. An important long-term support band between ₹135 and ₹140 arrested this decline recently.

On Tuesday, the stock rebounded 4.5 per cent from this band. Volume was above average during this session. The relative strength index on the daily chart has reversed higher from the 40-level indicating positive momentum. The weekly RSI is moving higher towards the bullish zone in the neutral region. Other, weekly indicators are featuring in the positive territory implying the medium-term uptrend is still in force. Moreover, the stock’s near-term corrective decline appears to have come to an end. With this, the stock can extend its up move and reach the price target of ₹151 and ₹154 in the coming trading sessions. Buy the stock with a stop-loss at ₹142.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

Published on January 28, 2014
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