Investors with a short-term horizon can buy the stock of Den Networks at current levels. The stock has been in a short-term sideways consolidation phase since taking support at ₹45 in mid-July 2018. Since then, the stock has been range-bound in the band between ₹45 and ₹60 with a positive bias.
On Wednesday, the stock zoomed 11.6 per cent accompanied with above average volume, decisively breaching the 21- as well as 50-day moving averages. Although the stock currently tests the upper boundary of the sideways range, the bias is bullish and there is a strong likelihood of the stock to breaking above ₹60 and extending its rally in the coming days.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region while the weekly RSI has entered the neutral region from the bearish zone. Also, the weekly price rate of change indicator features in the positive territory implying buying interest.
The short-term outlook is bullish for the stock. A decisive break above ₹60 can take the stock higher to ₹61.5 and ₹62.5 in the forthcoming trading sessions. Traders with a high-risk appetite can buy the stock with a stop-loss at ₹57.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)