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Investors with a short-term horizon can buy the stock of Meghmani Organics at current levels. The stock has been in a medium-term uptrend since it recorded a 52-week low at ₹31.8 in late March and took support in the band ₹32 and ₹35. While trending up, the stock found support at ₹44 and resumed the uptrend in late May.
In the past week, the stock had decisively breached its 200-day moving average and it trades well above the 50 and 200-day moving averages. On Wednesday, the stock jumped 6.8 per cent with extra-ordinary volume, breaching a key resistance at ₹55. The rally has strengthened the medium-term uptrend. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also entered the bullish zone. Moreover, the daily as well as the weekly price rate of change indicators are featuring in the positive terrain implying buying interest. The short-term outlook is bullish. The stock has the potential to trend upwards and reach the price targets of ₹61.5 and ₹63 in the ensuing trading sessions. Traders with a short-term view can buy with a stop-loss at ₹56.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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