Stock Fundamentals

Chart Focus: Buy Allcargo Logistics (₹178.5)

Yoganand D BL Research Bureau | Updated on July 24, 2021

Investors with a medium-term perspective can buy the stock of Allcargo Logistics at around current levels. Since early January 2018 peak of ₹228, the stock was on a long-term downtrend until it registered a multi-year low at ₹48.6 in March 2020. Subsequently, the stock changed direction and has been in an intermediate to long-term uptrend since March 2020. While trending up, the stock had surpassed a key long-term barrier at ₹120 in November 2020 and continued to trend upwards.

In April this year, the stock took support at around ₹120 and resumed the primary uptrend. Since then, the stock has been in a medium-term uptrend. Short-term trend is also up. After a minor pause at around ₹115, the stock gained 11 per cent accompanied by extraordinary volume in the past week, breaking through a vital long-term barrier at ₹160.

Now, ₹160 level will act as a significant base for the stock. Both the daily and the weekly relative strength index are featuring in the bullish zone, backing the uptrend. Also, the daily and the weekly price rate of change indicators are hovering in the positive terrain, indicating buying interest. With the regaining bullish momentum, the stock has the potential to trend northwards and reach the price targets of ₹200 and ₹215 over the medium-term.

 

A minor pause is likely at around ₹200 while trending upwards. Investors/traders with a medium-term horizon can buy the stock with a stop-loss at ₹160 levels.

Published on July 24, 2021

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