Investors with a short-term horizon can buy the stock of KNR Constructions at current levels. The stock jumped 5 per cent accompanied by above average volume on Thursday, breaking above a key immediate resistance as well as 50-day moving average at ₹248. This rally has also altered the short-term downtrend that was in place since late March this year.
Short-term trend is up for the stock. Since taking support at ₹170 in October 2018, the stock has been in an intermediate-term uptrend. It took support at ₹224 in early May and resumed the uptrend. The stock currently hovers well above the 21- and 50-DMAs.
The daily RSI has entered the bullish zone from the neutral region and weekly RSI has also entered the bullish zone backing the uptrend. Moreover, the daily and weekly price rate of change indicator hovers in the positive territory indicating buying interest.
Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹270 and ₹276 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹254 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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