Investors with a short-term perspective can consider buying the stock of IL&FS Engineering and Construction Company at present levels. Since taking support at ₹19 in August 2013, the stock has been on a long-term uptrend.
Following a corrective decline, the stock found support at ₹51 in August 2014 and subsequently resumed its primary uptrend. The short-term trend is also up for the stock.
On Wednesday, the stock surged 7.5 per cent accompanied by extraordinary volumesm breaching a key resistance at ₹63.5 levels. The daily and weekly relative strength indices have entered the bullish zone from the neutral region, strengthening the stock’s uptrend. Moreover, other indicators on the daily chart are featuring in the positive territory backing the bullish momentum. It can rally and reach the target of ₹69.5 and then ₹71 in the forthcoming trading sessions. Buy the stock while maintaining a stop-loss at ₹65.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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