Stock Fundamentals

Trading pick of the week: Buy Delta Corp

Yoganand D | Updated on March 06, 2021

The stock of Delta Corp has been in an intermediate-term uptrend, forming higher peaks and higher troughs since it registered a 52-week low at ₹54 in March 2020. While trending up, the stock had emphatically breached a key resistance at ₹100 in August 2020 and, thereafter, another vital resistance at ₹125 in November 2020. But in last December the stock met with a key resistance in the band between ₹160 and ₹163 and began to move sideways in a range between ₹140 and ₹163 until recently.

Last week, the stock gained bullish momentum and surged 17 per cent backed with good volume, conclusively breaking above the key barrier in the ₹160-₹163 band. Both the medium- and short-term trend is up for the stock.

Moreover, the stock had decisively breached the 21- and 50-day moving averages and trades well above them now. There had been an increase in daily volume over the past four trading sessions. The daily and the weekly price rate of change indicators feature in the positive terrain implying buying interest.

Further, the daily as well as the weekly relative strength indices are hovering in the bullish zone, strengthening the bullish momentum. The medium-term outlook is bullish for the stock.

It has potential to trend upwards and hit the price targets of ₹190 and then ₹205 over the medium-term with a minor pause at around ₹200. Investors with a medium-term perspective can buy the stock with a stop-loss at ₹157 levels.

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Published on March 06, 2021
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