Comments
We recommend a buy in the stock of Arvind from a short-term horizon. It is evident from the charts of Arvind that following a short-term downtrend from Rs 105, the stock found support at around Rs 72 in late March and began to move sideways. Since then, the stock has been on a sideways consolidation in the range between Rs 72 and Rs 88. The stock has significant long-term support in the band between Rs 70 and Rs 72. After testing this support band and lower boundary over the past two weeks, the stock surged 5.8 per cent with excellent volume on Tuesday.
The stock’s reversal is triggered by positive divergence in daily price rate of change and moving average convergence divergence indicator. We notice that there is an increase in volume in last three trading sessions. The stock’s rally has breached its 21-day moving average. Both daily and weekly relative strength indices are moving higher in the neutral region towards the bullish zone.
We are bullish on the stock from a short-term perspective as it is reversing higher from a significant support backed by positive divergence and volume. We expect its rally to continue and hit our price target of Rs 80.5 or Rs 82 in the sessions ahead. Traders with short-term perspective can buy the stock with stop-loss at Rs 75.5 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.