We recommend a buy in the stock of Delta Corp from a short-term horizon. It is apparent from the charts of the stock that following a medium-term downtrend from its key resistance at Rs 75, the stock found support at Rs 44 in late July. Subsequently, the stock changed trend triggered by positive divergence in daily moving average convergence divergence indicator. Since then, the stock has been on a short-term uptrend.

On Monday, it decisively broke out of its important resistance at Rs 55 surging 7 per cent. We notice that there is an increase in daily volume in the past two trading sessions. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is climbing higher in the neutral region. The daily MACD is moving higher in line with the stock price and is on the brink of entering the positive territory implying upward momentum. Moreover, daily price rate of change indicator is featuring in the positive area implying buying interest. Our short-term outlook on the stock is bullish. We expect its rally to continue and reach our price target of Rs 62.5 or Rs 64 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 58.8 level.

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

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