After finding ground at around Rs 53, National Aluminium Company Ltd (Nalco) jumped more than 11 per cent with good volumes in the previous week. This rally has breached the stock's immediate resistance at Rs 59 as well as its 21 and 50-day moving averages. However, the stock is currently testing its 200-day moving average at Rs 63.

The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is inching higher in the neutral region.

Both daily and weekly price rate of change indicators are featuring in the positive terrain implying buying interest. Strong up move above Rs 63 will push the stock higher to Rs 67 and then to Rs 71 in the short-term.

Only an emphatic rally above Rs 71 will reinforce the stock's medium-term uptrend which started from December 2011 trough of Rs 48.5. Subsequent medium-term targets will be Rs 77 and Rs 81.

Nevertheless, inability to surpass Rs 67 can pull the counter down to Rs 57 and to Rs 54 in the short-term. Significant long-term support is pegged between Rs 48 and Rs 50.

Rural Electrification Corp (Rs 226.9)

The stock's long-term support zone between Rs 195 and Rs 200 cushioned it from further declines in March this year. It surged 10 per cent last week, breaching its 21 and 50-day moving average emphatically.

The stock is also hovering well above its 200-day moving average. The daily relative strength index has just entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone. Breakout of resistance at Rs 230 will accelerate the stock northwards to Rs 250 and to Rs 270 in the medium-term.

On the downside, decline below the abovementioned support band will mar the stock's medium-term uptrend. A fall to Rs 180 or even to Rs 165 is then possible in the medium-term.

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