Buy Delta Corp at current levels. The stock took support at around Rs 44 in July and bounced back. Since then, it has been on a medium-term uptrend, forming higher peaks and troughs. In early October, the stock resumed this medium-term uptrend after taking support at Rs 60. The short-term trend is also up.
On Monday, the stock jumped 6 per cent with extraordinary volume, conclusively breaching the key resistance at around Rs 71. The stock is now trading well above its 50- and 200-day moving averages. The relative strength index (RSI), is a technical indicator that measures the stock's recent trading strength. The RSI is featuring in the bullish zone indicating strength in the current up-move.
The daily moving average convergence divergence indicator has signalled a buy and is now hovering in the positive territory. The stock’s short-term outlook is bullish. It has the strength to move up and reach the price target of Rs 78.5 or Rs 80 in the upcoming trading sessions. Traders with a short-term perspective can buy it with a stop-loss at Rs 74.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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