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We recommend a buy in the stock of Triveni Engineering and Industries from a short-term perspective. It is apparent from the charts of the stock that in February, the stock bottomed out taking support from a long-term base level at Rs 80. This reversal was also backed by a positive divergence in daily relative strength index. Since then, the stock has been on a medium-term uptrend.
Intermediate-term support at Rs 95 provided support for the stock between mid-March and April. Reinforcing the uptrend, it breached its short-term resistance as well as its 200-day moving average at Rs 105 by surging 6.6 per cent with good volumes on Tuesday.
The daily RSI has re-entered in to the bullish zone and weekly RSI is heading towards this zone from the neutral region. Daily moving average convergence divergence indicator has signalled a buy. We are bullish on the stock from a short-term perspective. We expect it to prolong its up move until it reaches our price target of Rs 112 or Rs 115.5 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 105.5.
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