Comments
The stock KEI Industries was on highlight last week and had jumped 16 per cent. This rally underpins the long-term uptrend of the stock. Investors with a short-term perspective can buy it at current levels. Since the stock took support at ₹248 in October 2018, it has been in an intermediate-term uptrend. But, after recording a new high at ₹532 in May this year, the stock was on a corrective medium-term downtrend until last week.
Taking support at ₹400, the stock continued to trend upwards and appears to have resumed the intermediate-term uptrend. It has formed a bullish engulfing candlestick pattern in the weekly chart that implies short-term trend reversal.
On Friday, the stock gained 3.7 per cent extending the rally and breached a key resistance at ₹475 as well as the 50-day moving average. It hovers well above the 21- and 50-DMAs. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering the bullish zone from the neutral region.
The short-term outlook is bullish. The stock can continue to trend upwards and reach the price targets of ₹508 and ₹520 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹477.
(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.