Todays Pick

Swan Energy (₹202.5)

Yoganand D BL Research Bureau | Updated on January 11, 2018

Investors with a short-term perspective can buy the stock of Swan Energy at current levels. The stock gained 5.6 per cent accompanied with an above average volume on Tuesday, breaking through a key long-term resistance at ₹197. With this rally, the stock has resumed its intermediate-term uptrend that has been in place since taking support at ₹115 in August 2017. Medium- as well as short-term trends are up for the stock.

After testing the key resistance at ₹197 for more than a week, the stock breached it decisively on Tuesday. The daily and weekly relative strength indices feature in the bullish zone backing the uptrend. Similarly, the daily as well weekly price rate of change indicators feature in the positive territory implying buying interest. There has been an increase in daily volume over the past two weeks.

The stock trades well above its 50- and 200-DMAs. It can extend the ongoing rally and reach the price target of ₹211 and ₹215 in the ensuing trading sessions. Traders can buy with a stop-loss at ₹198.

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

Published on January 09, 2018

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