Investors with a short-term perspective can consider buying the stock of Rolta India at current levels. The stock rose 4.6 per cent, accompanied with extraordinary volume on Monday, breaching its 200-day moving average. With this rally, the stock appears to have ended its near-term corrective fall that had began last week after taking support at ₹59 and the stock has resumed its short-term uptrend.
In early June, the stock ended its medium-term downtrend by finding support ₹51. The stock subsequently, reversed direction triggered by positive divergence and started to trend upwards. Since then, the stock has been on a short-term uptrend. It hovers well above its 50- and 200-day moving averages. The daily relative strength index re-entering the bullish zone from the neutral region, backs the stock's near term bullish momentum.
The daily price rate of change indicator is featuring in the positive territory implying buying interest. Overall, the short-term outlook is bullish for the stock. It can extend its uptrend and reach the price targets of ₹64 and ₹66 in the upcoming trading session. Buy the stock with a stop-loss at ₹59.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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