The long-term outlook for the stock of Aegis Logistics (₹284.70) is bullish. The stock has risen sharply after making a low of ₹167.45 in February this year. This rally confirms the reversal of downtrend that was in place since June last year.
Strong supports are at ₹259 – the 21-month moving average and at ₹243 and ₹218 – trendlines. The stock has a potential to target ₹430 on the upside in the first half of next year. Intermediate resistances are at ₹330 and ₹350. A strong break above ₹350 will pave way for the above-mentioned target of ₹430.
Investors with a long-term perspective can buy the stock at current levels. Accumulate the stock on dips at ₹265 and at ₹245. Keep the stop-loss at ₹172. Trail the stop-loss up to ₹310 as soon as the stock moves up to ₹370. Move the stop-loss further up to ₹380 when the stock touches ₹410 on the upside. Exit the stock at ₹420. The level of ₹180 is a crucial support which has to be broken to turn the outlook bearish. But that looks unlikely.