, part of the engineering and construction products sector, hit a fresh record high in October and technical setup suggests that the rally is likely to continue.
The stock hit a fresh record high of Rs 461 on 12th October and most technical indicators suggest a possible uptrend to continue that could take the stock towards Rs 650 levels which translates into an upside of over 50 per cent, suggest experts.
Short-term traders can look to buy the stock now or on dips towards Rs 423-400.
The stock moved largely in a range since January 2021 where Rs 448 acted as a peak. It bounced back after hitting a low of Rs 289 on 23 May 2022 to break out of the consolidation range in October.
It is trading well above crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.
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The Relative Strength Index (RSI) below 30 is considered oversold and above is considered 70 overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
The stock price started its upmove from 59 (August 20) and made a high of 396 back in June 21. Profit booking followed but the stock bounced from the averages and made a new high of 448.25 (Jan 22).
“Praj Industries stock traded sideways mode taking support in Rs 285-300 area, but most of the time it bounced from the averages,” Bharat Gala, President – Technical Research, Ventura Securities, said.
“The super trend continuously was in Positive mode. Recently, the stock again started trading above averages & made a new weekly high of Rs 461.45 above all prior highs,” he said.
“The Vortex, KST & MACD indicator suggests a possible firm uptrend. The possible targets are Rs 650-800 in next 6-8 months,” added Gala.
“If the stock price corrects downwards the buy levels are Rs 423-400-381-363-351. A stop loss to be observed in the trade is Rs 337,” he recommends.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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