Investors with a short-term perspective and high-risk appetite can buy the stock of D-Link India . Since the stock took support at ₹51 in March, it has been in an intermediate-term uptrend.
After a corrective medium-term downtrend the stock found support at ₹92 in late October and the 200-day moving average also cushioned it. Subsequently, the stock started to trend upwards and has been in a near-term uptrend over the past two weeks.
On Wednesday, the stock surged 6 per cent accompanied by extra-ordinary volume, breaking above a key resistance as well as the 50-day moving average at ₹103. The stock trades well above the 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is charting higher in the neutral region.
Further the daily price rate of change indicator features in the positive terrain, implying buying interest. The short term stance is bullish for the stock. It has potential to trend upwards and reach the price targets of ₹110 and ₹112. Traders can buy the stock with a stop-loss at ₹102.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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