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Investors with a short-term horizon can consider buying the stock of Praj Industries at current levels.
The stock jumped almost 8 per cent accompanied by extraordinary volume on Thursday, breaking above a key resistance at ₹118. Since taking support at ₹72.5 in early July 2018, the stock has been on an intermediate-term uptrend. But, the stock had encountered a key resistance at ₹118 in October and continued to move sideways in the band between ₹100 and ₹118. In the last session, the stock moved out of this sideways range on the upside, backed by strong buying interest.
The stock trades well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the bullish zone. Also, both the daily and weekly price rate of change indicators are hovering in the positive territory indicating buying interest.
The short-term outlook is bullish for Praj Industries. It can continue to trend upwards and reach the price targets of ₹127.5 and ₹130 in the coming trading session. Traders can the stock with a stop-loss at ₹119.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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