Investors with a short-term perspective can buy the stock of Equitas Holdings at current levels. The stock zoomed 10.7 per cent accompanied by above-average volume on Tuesday, breaching the key resistance level of ₹125. Since registering a new low at ₹78 in late October 2018, the stock has been in an intermediate-term uptrend. But, it encountered a key resistance at ₹125 in December and witnessed a corrective decline. The stock found support at ₹110 in February and resumed its uptrend.
The recent rally has decisively surpassed the 21- as well as 50-DMAs and the stock currently hovers well above these levels. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the neutral region with an upward bias.
The stock has potential to extend the uptrend and reach the price targets of ₹133.5 and ₹136.5 in the upcoming trading sessions. Traders can buy the stock with stop-loss at ₹125.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)