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Investors with a short-term perspective can buy the stock of Ashoka Buildcon at current levels. The stock took support at around ₹110 in February and again in mid-May 2019 and started to trend upwards. Since May this year, the stock has been in a short-term uptrend. While trending up, the stock breached its moving average compression (21-, 50- and 200-day moving averages) at ₹128 in late May. Following a minor correction, the stock took support at ₹131 and resumed the uptrend.
On Monday, the stock jumped 3.7 per cent accompanied by above average volume, breaking above a key resistance at ₹140. The stock trades well above its 50- and 200-DMAs. Both the daily and the weekly price rate of change indicators feature in the positive territory implying buying interest.
The short-term outlook is bullish for Ashoka Buildcon. It can continue to trend upwards and reach the price targets of ₹151.5 and ₹154.5. Traders can buy with a stop-loss at ₹142.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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