Comments
We recommend a buy on the stock of Autoline Industries from a short-term perspective. It is evident from the charts of the stock that following a sharp rally in early April, the stock encountered resistance around Rs 133 in late April and started to decline. Since then, the stock has been on a medium-term downtrend. However, the stock found support at its key base level at Rs 77 last week. Triggered by positive divergence in the daily relative strength index, the stock subsequently changed direction.
On Tuesday, the stock surged 5.7 per cent accompanied by above average volume, forming a bullish engulfing candlestick pattern at its key support level. As the stock is reversing higher from a key support level backed with positive divergence we take a contrarian stance on the stock. We are bullish on it from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 86 or Rs 88 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 81 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.