Comments
Investors with a short-term horizon and contrarian view can buy the stock of Aditya Birla Capital at current levels.
The stock gained 4.6 per cent accompanied by above average volume on Monday while the benchmark indices witnessed a sell-off. Key medium-term support in the band between ₹78-80 is providing base for the stock. In February, the stock had bounced from this range and witnessed a short-term uptrend that got halted at ₹105 in March. Since then, the stock has been in a sideways consolidation phase in the wide range between ₹78 and ₹105.
Recently, the stock found support at ₹80 and began to trend upwards. The daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI is recovering from the oversold territory and is on the brink of entering the neutral region. Also, the daily price rate of change indicator is likely to enter the positive territory from the negative.
Taking a contrarian view, the short-term outlook is bullish for the stock. It can trend upwards and reach the price targets of ₹89 and ₹91 in the coming weeks. Traders can buy with a stop-loss at ₹83.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
Comments
COMMENT NOW
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.