The stock of Aegis Logistics jumped almost 8 per cent accompanied by extra-ordinary volume on Wednesday, breaking above a key barrier of ₹300. This rally provides investors with a short-term perspective, an opportunity to buy the stock at current levels. The stock has been in a medium-term uptrend since it took support at ₹200 in early November 2020. Within this uptrend, the stock was in a sideways consolidation phase in the band between ₹280 and ₹300 over the past one month. Significant support at ₹200 has been providing base since late February this year and has limited the downside well. Moreover, the stock has surpassed the 21- and 50-day moving average recently and trades well above these moving averages.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. The stock has potential to extend the uptrend and reach the price targets of ₹326 and ₹333 in the forthcoming trading sessions. Traders with a short-term horizon can buy the stock with a stop-loss at ₹307 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)