Investors with a short-term perspective can buy the stock of Action Construction Equipment at current levels. The stock recorded a 52-week high at ₹175.9 in early March this year and started to decline. Thereafter the stock continued to trend downwards and had been on a short-term downtrend until it found support at around ₹140 in last week.
The base at around ₹140 cushioned the stock this week also the stock began to move higher. On Tuesday, the stock jumped 7 per cent accompanied by above average volume, it surpassed its 21-day moving average and a key medium-term resistance at ₹150. This up-move has strengthened the bullish momentum.
The daily relative strength index is charting higher in the neutral region towards the bullish zone and the weekly RSI has re-entered into the bullish zone. Besides, the daily price rate of change indicator has entered the positive terrain implying buying interest. The short-term outlook is positive for the stock. It can continue to trend upwards and reach the price targets of ₹159 and ₹162 in the coming trading sessions. Traders with a short-term view can buy with a stop-loss at ₹149.5.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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.