Investors with a short-term perspective can buy the stock of Praj Industries at current levels. Since the August 2013 low ₹30, the stock has been on an intermediate-term uptrend. The stock has been on a medium-term sideways consolidation phase in the broad range between ₹60 and ₹79 with a positive bias. Short-term trend is up.
On Wednesday, it gained 8 per cent breaching its 50- and 21-day moving averages with good volume. Moreover, this rally has surpassed a key resistance at ₹68 levels. The moving average convergence divergence indicators are comfortably featuring in the positive territory implying upward momentum. Also, there is buying interest seen in the price rate of change indicators. The short-term forecast for the stock is bullish. The stocks can extend its rally and touch our price target of ₹74.5 and ₹76 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹70.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)