Comments
We recommend a buy in the stock of Nava Bharat Ventures from a short-term perspective. It is evident from the charts of the stock that after encountering resistance at around Rs 220 in February and April this year, the stock started to decline. It was on a medium-term downtrend until it registered its 52-week low at Rs 147 on August 31. Since then, the stock has been on a short-term uptrend.
On Thursday, the stock decisively broke through key resistance at Rs 175 and its medium-term downtrend-line by jumping 6 per cent with good volume. The stock is hovering well above its 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 moving average convergence divergence indicator is steadily inching higher in line with the stock price and has entered the positive territory implying upward momentum.
Considering the stock's recent breakthrough of key resistance and trend-line, we are bullish on it from a short-term horizon. We anticipate its up move to prolong and reach our price target of Rs 194.5 or Rs 198 in the ensuing trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 183 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.