We recommend a buy in the stock of PTC India from a short-term perspective. It is evident from the charts that following an intermediate-term downtrend from its January peak of Rs 81, the stock found support at around Rs 39 in early August. Subsequently, the stock changed direction triggered by positive divergence in daily moving average convergence divergence indicator. After re-testing this support again in late August, the stock bounced up.
On Monday, the stock gained 8 per cent accompanied by good volume, breaching its short-term downtrend line and 21-day moving average emphatically. The daily price rate of change indicator is featuring in the positive area implying buying interest.
As the stock is reversing higher from a significant long-term support and breaching its short-term downtrend line, we are bullish on it from a short-term perspective. We anticipate its rally to continue and reach our price target of Rs 47.5 or Rs 48.5 in the upcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 44.3 level.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)