Technical Analysis

Ajmera Realty & Infra India (₹185.8): Buy

Yoganand D BL Research Bureau | Updated on January 24, 2019 Published on January 24, 2019

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Investors with a short-term perspective can buy the stock of Ajmera Realty & Infra India at current levels. The stock gained 5 per cent accompanied by above average volume on Thursday, decisively moving above the key resistance level of ₹180.

Following a long-term downtrend, the stock found support at ₹131 in mid-December 2018 and changed direction triggered by positive divergence in the weekly relative strength index. Since then, the stock has been on a short-term uptrend. While trending up, the stock decisively breached a key long-term resistance at ₹160 in late December. Moreover, the stock has also conclusively surpassed its 21- and 50-DMAs in late December and trades well above them.

There has been an increase in daily volume over the past two weeks. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continue to chart upwards in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹193.5 and ₹197 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹181.5.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on January 24, 2019
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