Comments
We recommend a buy in the stock of Sanghvi Movers from a short-term horizon. It is evident from the charts of the stock that following a medium-term downtrend from its January peak of Rs 103, the stock found support at around Rs 65 in early March. After testing this support in late March, the stock started to move higher triggered by positive divergence in daily moving average convergence divergence indicator.
On Wednesday, the stock rose 4 per cent breaching its immediate resistance at Rs 72. The daily relative strength index is moving higher in the neutral region towards the bullish zone and weekly RSI is on the brink of entering the neutral region. The daily price rate of change indicator has entered the positive area implying buying interest. Moreover, the stock is hovering well above its 21-day moving average.
Taking a contrarian stance on the stock from a short-term perspective, we are bullish on it. We anticipate the stock’s up move to continue and reach our price target of Rs 77.5 or Rs 79 in the upcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 72.8 level.
( Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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.