Today's Pick

Jayant Agro-Organics (Rs 136.4): BUY

Yoganand D. | Updated on March 14, 2018 Published on September 12, 2012


Investors with short-term perspective can consider buying the stock of Jayant Agro-Organics. It is evident from the charts of the stock that following a decline, it took support at its long-term base level in June and December 2011. This base also coincides with the stock's 61.8 per cent Fibonacci retracement level of its prior up-move. Subsequently, the stock continued its uptrend and has been on an intermediate-term uptrend since last December. Short-term trend is also up for the stock.

On Wednesday, the stock broke through a key resistance at Rs 130 by jumping seven per cent. We notice that there is an increase in volume over past two trading sessions. The stock is hovering well above its 21- and 50-day moving averages. Both daily and weekly relative strength index are hovering in the bullish zone.

The daily moving average convergence divergence indicator is moving higher in line with the stock price and is about to enter the positive territory. The daily as well as weekly price rate of change indicators are hovering in the positive terrain implying buying interest. Considering that the stock's uptrendline is in tact and recent resistance break-out, we are bullish on the stock. We expect its up move to prolong and reach our price target of Rs 142 or Rs 145 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 133.5.

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Published on September 12, 2012
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