Comments
The stock of Sundaram-Clayton, after a pause, resumed its downtrend since the beginning of the year. Though the stock attempted a recovery in the February and March, the rally did not sustain as it faced another round of substantial sell-off at ₹3,250. This brought down the price to fresh 52-week low of ₹1,662.5 over a period of time. The stock recovered from that low and was largely consolidating between ₹1,740 and ₹2,100.
However, recently the stock broke out of the consolidation range that it has been holding since August. The 21-DMA has crossed over the 50-DMA level, which is a bullish indication. The daily relative strength index (RSI) is showing an uptick and the moving average convergence divergence (MACD) indicator is in the positive territory. In weekly charts , both the RSI and MACD is showing a bullish divergence, signalling a major trend reversal. Another indication of a trend reversal is a confirmed double bottom pattern in the daily charts.
Hence, one can buy the stock with stop-loss at ₹1,940 for a target of ₹2,465 over the medium-term.
Note: The recommendations are based on technical analysis. There is a risk of loss in trading.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.