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Investors with a short-term horizon can buy the stock of Infibeam Incorporation at current levels. Following a sharp rally in early November 2017, the stock recorded an all-time high of ₹195.7 on November 6. Since then, the stock has been in a medium-term downtrend. However, the stock found support at around ₹140 in late December. Subsequently, it moved sideways testing the key support at ₹140 for almost three weeks. Triggered by positive divergence in the daily relative strength index, the stock changed direction this week.
On Wednesday, the stock gained 4 per cent accompanied by an above average volume, breaching a key immediate resistance at ₹150. Moreover, this rally has also breached its 21- and 50-day moving averages. The daily RSI is on the brink of entering the bullish zone from the neutral region and the weekly RSI is trending upwards in the neutral region. The daily price rate of change indicator feature in the positive territory implying buying interest.
The near-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹161 and ₹164 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹150.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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