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The stock of Prakash Industries gained 5.3 per cent accompanied by above average volume on Wednesday, breaking above a key resistance level of ₹88. Investors with a short-term view can consider buying the stock at current levels.
The stock has been on an intermediate-term downtrend since recording a high at ₹276 in January 2018. But, the stock found support at ₹70 in early December and began to trend upwards. Key support in the band between ₹67 and ₹70 cushioned the stock in early January this year. The stock has gained 14 per cent this week and has decisively breached a key resistance at ₹84 as well as its 21-day moving average. There has been an increase in daily volume over the past one month.
The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI is likely to enter the neutral region from the bearish zone. The daily price rate of change indicator features in the positive territory implying buying interest.
The short-term outlook is positive for the stock. It can continue to trend upwards and hit the price targets of ₹95.5 and 97.5 in the short term. Traders can buy the stock with a stop-loss at ₹89.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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