Comments
We recommend a buy in the stock of Delta Corp from a short-term horizon. It is evident from the charts of the stock that since taking support at around Rs 55 in July-August 2012, it has been in an intermediate-term uptrend. The stock took support from its uptrend-line in late December as well as in the previous week and resumed its uptrend.
On Monday, reinforcing the bullish momentum, the stock surged 4.5 per cent breaching its 21- and 50-day moving averages. We notice that there is an increase in daily volume in the past two trading sessions. Both daily and weekly relative strength indices are moving higher in the neutral region towards the bullish zone. Likewise, daily as well as weekly moving average convergence divergence indicators are featuring in the positive territory implying upward momentum.
Considering that the stock's intermediate-term uptrend is intact, we are bullish on it from a short-term perspective. We expect its rally to continue and reach our price target of Rs 83.5 or Rs 85 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 78.5 levels.
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.