Investors with a short-term perspective and with a contrarian view on the markets can buy the stock of Avanti Feeds at current levels. Both the medium as well as the short-term trends are down for the stock. However, the stock recorded a 52-week low at ₹350 on September 28 and started to move sideways. The stock has a key support in the band between ₹350 and ₹355, which acts as a cushion. There has been an increase in daily volume over the past five trading sessions.

Witnessing buying interest, the stock gained 3.6 per cent with above-average volume on Monday. The daily relative strength index is recovering from the oversold territory and is on the brink of entering the neutral region from the bearish zone. Moreover, the weekly relative strength index and price rate of change indicators are displaying positive divergence, implying that a trend reversal is on the cards.

The near-term outlook appears to be positive for the stock. It can extend the up-move and hit the near-term price targets of ₹393 and ₹400 in the coming trading sessions. Traders with a high-risk appetite can buy the stock with a stop-loss at ₹369 levels.

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