Technical Analysis

Take Solutions (₹118): Buy

Yoganand D BL Research Bureau | Updated on August 30, 2019

Investors with a short-term perspective can consider buying the stock of Take Solutions at current levels. Following a short-term downtrend in the months of June and July this year, the stock found support at ₹95 in early August. Subsequently, the stock reversed direction triggered by positive divergence in the daily relative strength index and price rate of change indicators. Since then, the stock has been in a nascent uptrend.

On Wednesday, the stock jumped 10.8 per cent breaking above a key resistance at ₹107. This rally has also breached the 50-day moving average and the stock trades well above the 21- and 50-day moving averages. There is an increase in daily volume over the past two trading sessions.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI features in the neutral region with a positive bias. Besides, the daily price rate of change indicator hovering in the positive terrain indicates buying interest.

The short-term view is bullish. The stock can continue to trend upwards and reach the price targets of ₹123 and ₹125.5 levels in the short term. Traders can buy with a stop-loss at ₹115.5.

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

Published on August 30, 2019

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