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We recommend a buy in the stock of Puravankara Projects from a short-term perspective. It is seen from the charts of the stock that its significant long-term support at Rs 55 arrested the stock's decline in May and early June. Triggered by positive divergence in daily relative strength index and price rate of change indicator, the stock changed its direction. Since then, the stock has been on a short-term uptrend.
On Wednesday, the stock jumped nine per cent, emphatically breaking through its key resistance at Rs 68 and 200-day moving average as well. The stock is hovering well above its 50- and 200-day moving averages. We observe that there is an increase in daily volumes over the past four trading sessions. The daily RSI has entered the bullish zone and weekly RSI is on the brink of entering into this zone from the neutral region. The daily moving average convergence divergence indicator is moving higher in line with the stock price and has signalled a buy. Both daily as well as price rate of change indicators are featuring in the positive terrain implying buying interest.
We are bullish on the stock from a short-term perspective. We anticipate its up move to continue and reach our price target of Rs 75 or Rs 77.5 in the ensuing trading sessions. Traders with a short-term perspective can buy the stock with stop-loss at Rs 70.5.
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