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We recommend a buy in the stock of Delta Corp from a short-term perspective. It is apparent from the charts of the stock that it has been on a medium-term uptrend since taking support at around Rs 55 in July-August this year. In late October, the stock took support at Rs 65, a key base level and 200-day moving average and continued to trend higher.
On Monday, it emphatically broke through a significant resistance at Rs 75 by jumping 5 per cent, accompanied by above average volume. This up move has strengthened the stock's bullish momentum and is hovering well above its 50- and 200-day moving averages. Both daily and weekly relative strength index has entered the bullish zone from the neutral region. The daily as well as weekly price rate of change indicators are hovering in the positive terrain, implying buying interest.
The daily and weekly moving average convergence divergence indicators are featuring in the positive territory implying upward momentum. Considering that the stock's medium-term uptrend-line is intact, we are bullish on the stock from a short-term perspective. We expect its rally to prolong and reach our price target of Rs 80.5 or Rs 82 in the approaching trading sessions. Traders with a short-term perspective can consider buying the stock with stop-loss at Rs 75.7.
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