, part of the aerospace and defence space, rallied by about 100% in a year, and the rally may not be over yet based on the chart patterns, suggest experts. The stock has been on buyers’ radar so far in 2022. It rose more than 5% in a week, 10% in a month, and nearly 25% in the last three months. After hitting a high of Rs 2,639 on 12 September, the stock underwent some consolidation. It bounced back after taking support above the 50-DMA on the daily charts.
Most of the technical indicators also point towards higher levels. Short-term traders can look to buy the stock now or on dips for a target above Rs 2,700-2,800 in the next two months, suggest experts.
The Relative Strength Index (RSI) is at 61.7. RSI below 30 is considered oversold, and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal Line, a bullish indicator.
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In terms of price action, the stock price is trading above most of the crucial short- and long-term moving averages of 5, 10, 30, 50, 100, and 200-DMA, which is a positive sign for the bulls. The market is moving northward, and financial stocks are at the helm. But, Industrial manufacturing and power stock have a consistent performance on the higher side.
“Looking at
stock for the past ten months, the stock is in strong upside movement. In between, the stock has corrected four times around 15%, followed by upside movement. A midterm moving average is acting as a trend navigator for the stock,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer- FinLearn Academy, said.
The intensity of the recent decline is 15%, which is in line with the previous fall. The stock rebounded from the support band, which coincides with the rising moving average.
“The recent bottom is significant as multiple technical factors harp on the same string. The stock has breached the falling trendline, indicating a resumption of impulse move,” he said.
From the oscillator perspective, MACD has a positive crossover in the positive zone, indicating a bullish continuation sign.
“Stock offers buy opportunity in the range of Rs 2,512 to Rs 2,480 level with a stop loss of Rs 2,380. The stock has upside potential up to Rs 2,750/2,850 level for the duration of 2 months,” recommends Shah.
(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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