Investors with a short-term perspective can buy Nilkamal, world's largest manufacturer of moulded plastic furniture. After taking support at Rs 95 between August and October 2013, the stock started trending upward.
A medium-term uptrend has been in progress since then. Recently, the stock took support around Rs 131 and resumed this uptrend. After testing the key resistance at Rs 145 for a few trading sessions, the stock decisively breached it by gaining 5 per cent on Monday.
This rally has also conclusively surpassed its 200-day moving average line. There was an increase in volume in the breakout session. The indicators in the daily chart continue to feature in the bullish zone.
Those in the weekly chart have entered the bullish zone from the neutral region indicating an upward momentum.
The stock has the potential to continue the current rally to the price target of Rs 156 or Rs 159 in the forthcoming trading sessions. Buy the stock while maintaining a stop-loss at Rs 146.5 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)