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Investors with a short-term perspective can buy the stock of Rico Auto Industries at current levels. The stock jumped 5.4 per cent accompanied with an above average volume on Monday, decisively breaking above a key resistance at ₹84.
Following a medium-term downtrend, the stock found support at ₹64 in late June this year. The stock took support again at the same level in late July and bounced strongly. Since then, the stock has been in a nascent uptrend. While trending up, the stock emphatically breached its 21- and 50-day moving averages and a key resistance at ₹75 recently.
After hovering around the 200-day moving average for a week, the stock has conclusively surpassed it on Monday. There has been an increase in daily volume over the past two weeks. The daily relative strength index feature in the bullish zone and the weekly RSI is on the brink of entering this zone from the neutral region.
Overall, the short-term outlook is bullish for the stock of Rico Auto Industries. It can extend its uptrend and reach the price targets of ₹89.5 and ₹91 in the ensuing trading session. Traders can buy the stock with a stop-loss at ₹83.7.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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