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The stock of KEI Industries has been on a sideways trend from the beginning of this year. The price level of ₹465 provided solid base, the stock was not able to rally beyond ₹535. While the stock went about that level briefly, ₹562-mark was preventing the bulls from lifting the stock beyond this level.
However, in mid-May, the scrip decisively broke above the resistance at ₹562 with significant volumes and started gaining quickly. Nevertheless, the stock lost momentum in July and right from the start of the month, the stock began charting a sideways trend — it was oscillating between ₹700 and ₹750. On Monday, the stock breached ₹750-level, opening the door for further gain.
The relative strength index (RSI) has entered the bullish zone and the moving average convergence divergence (MACD) indicator on the daily chart is now turning its trajectory upwards after sliding since the beginning of August. Also, the price is above both the 21- and 50-day moving averages. Hence, traders can buy with a stop-loss at ₹745 and a target of ₹835.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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