Todays Pick

Vimta Labs (₹326.6): Buy

Yoganand D BL Research Bureau | Updated on July 21, 2021

 

Investors with a short-term perspective can buy the stock of Vimta Labs at current levels. Following a sideways consolidation phase in the band between ₹150 and ₹186 from December 2020 to April 2021, the stock broke through on the upside. Since this April, the stock has been in a medium-term uptrend. Short-term trend is also up. The stock trades well above the 21- and 50-day moving averages.

On Tuesday, the stock gained 8 per cent with above average volume, after a minor corrective decline that got halted at ₹300. There has been an increase in volume over the past four weeks.

The daily and the weekly price rate of change indicators are featuring in the positive terrain indicating buying interest. Besides, the daily as well as the weekly relative strength index are hovering in the bullish zone backing the uptrend. The stock now tests a key long-term resistance at ₹325 with a positive bias. The short-term outlook is bullish.

The stock has potential to surpass the vital resistance and reach the price targets of ₹340 and ₹347 in the coming trading sessions. Traders with a high risk appetite can buy the stock with a stop-loss at ₹320 levels.

 

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

Published on July 22, 2021

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