Todays Pick

Prism Johnson (₹126.3): Buy

Akhil Nallamuthu BL Research Bureau | Updated on March 29, 2021

The stock of Prism Johnson, which has been on a robust uptrend since March last year, does not seem to have lost its steam and the price action indicates that the scrip might extend the rally after having made a fresh breakout last week. Notably, the stock has multiplied nearly 5 times from its March low of ₹25.7, to the latest close of ₹126.3.

After the trend turned bullish in March last year, the scrip has been on a steady rise, consistently forming higher highs and higher lows. Over the course of this period, both the 21- and 50-day moving averages (DMAs) have restricted the corrective declines on the back of which bulls have made a comeback.

Similarly, the scrip bounced-off the 21-DMA at ₹112 last week and registered a fresh 52-week high of ₹127.2 on Friday. Substantiating the positive bias, the relative strength index and the moving average convergence divergence indicators are showing fresh upticks. For the above reasons, traders can buy the stock with a stop-loss at ₹122 and a target of ₹134.

The recommendations are based on technical analysis. There is a risk of loss in trading

Published on March 30, 2021

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