We recommend a buy in the stock of MT Educare from a short-term horizon. It is evident from the charts of the stock that following a medium-term downtrend, the stock found support at Rs 67 after registering its 52-week low on March 25. Subsequently, the stock changed trend and has been on a short-term uptrend. While trending higher, the stock decisively broke through its key resistance at Rs 85 in mid-April.

On Thursday, the stock jumped 6 per cent with extraordinary volume breaking its immediate resistance at Rs 95. The stock’s rally also breached its 50-day moving average and is hovering well above 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is moving higher in the neutral region towards the bullish zone.

The daily price rate of change indicator is featuring in the positive area indicating buying interest. Our short-term outlook on the stock is bullish. We expect its rally to continue and reach our price target of Rs 103 or Rs 106 in the approaching trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 97.

( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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