Investors with a short-term perspective can buy the stock of Minda Corporation at current levels.
The stock has been on an intermediate-term downtrend since encountering a key resistance at ₹155 in early January this year. But the stock found support at ₹65.5, 52-week low, in late August. Triggered by positive divergence in the daily price rate of change indicator, the stock changed direction. Since late August the stock has been in a medium-term uptrend.
Following a corrective decline, the stock took support at ₹80 in mid-October and continued to trend upwards. It breached the 21- and 50-day moving averages and trades well above them.
On Tuesday, the stock jumped 5.5 per cent accompanied by above average volume breaching a key resistance at ₹99. There has been an increase in daily volume over the past five trading sessions. The daily relative strength index features in the bullish zone and the weekly RSI hovers in the neutral region. Besides, the daily as well as the weekly price rate of change indicators feature in the positive terrain implying buying interest.
The stock appears to have resumed the medium-term uptrend. Targets are ₹106 and ₹108. Traders can buy with a stop-loss at ₹99.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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