Technical Analysis

NOCIL (₹113.7): Buy

Yoganand D BL Research Bureau | Updated on September 24, 2019 Published on September 24, 2019

Investors with a short-term perspective can buy the stock of NOCIL at current levels. The stock jumped 8.6 per cent in line with the benchmark indices rally on Monday. It has emphatically breached the key immediate resistance at ₹107 on Monday.

Following a medium-term downtrend the stock registered a 52-week low at ₹73.9 in late August and found support at this level. Subsequently, it reversed direction triggered by positive divergence in the daily relative strength index and price rate of change indicator. Since then, the stock has been in a short-term uptrend and recently got strengthened after a decisive breakout of the immediate resistance.

The stock hovers well above the 21- and 50-day moving averages. There has been an increase in daily volume over the past three weeks. The daily RSI has re-entered the bullish zone from the bearish zone and the weekly RSI hovers in the neutral region with an upward bias. Further the daily price rate of change indicator features in the positive terrain implying buying interest.

The short-term outlook is bullish for NOCIL. Targets are ₹118.5 and ₹121. Traders can buy the stock with a stop-loss at ₹111.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

Published on September 24, 2019
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