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Investors with a short-term perspective can buy the stock of Minda Corporation at current levels. Breaking above a key resistance at ₹110, the stock jumped 6 per cent accompanied by above average volume on Wednesday. With this rally, the stock appears to have resumed its medium-term uptrend that has been in place since the August 2019 low of ₹65.5.
After taking support at around ₹96 in early February this year, the stock started to trend upwards. It decisively breached the 50- as well as the 200-DMAs and extended the rally. Currently, the stock trades well above these moving averages.
Short-term trend is also up for the stock. The daily relative strength index features in the bullish zone and the weekly RSI is on the brink of entering the bullish zone from the neutral region. Besides, the daily as well as the weekly price rate of change indicators hover in the positive terrain implying buying interest.
The break-out of a key resistance at ₹110 strengthens the short-term uptrend and the outlook is bullish. Targets are ₹121.5 and ₹124. Traders can buy with a stop-loss at ₹113.5 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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