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The stock of Minda Corporation gained 4 per cent on Thursday and tests a key resistance at ₹140 with a positive bias. Investors with a short-term view can buy the stock at current levels.
After registering a 52-week low of ₹106 in late October, the stock changed direction triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a short-term uptrend. But, the stock encountered a key resistance at ₹140 in early November. After a brief pull-back, the stock has bounced and is testing the hurdle again now.
The stock trades well above its 21- and 50-day moving averages. This underpins bullish momentum. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI feature in the neutral region. Further, the buying interest is emerging as the daily price rate of change indicator has entered the positive territory from the negative territory.
The short-term outlook is positive for the stock and it has potential to surpass the current resistance level. Targets are ₹145.5 and ₹148. Traders can buy with a stop-loss at ₹136.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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