Technical Analysis

Ashoka Buildcon (₹121.1): Buy

Yoganand D BL Research Bureau | Updated on February 21, 2019 Published on February 22, 2019

The stock of Ashoka Buildcon jumped 8.3 per cent accompanied by above average volume on Thursday. The stock has breached its 21-DMA and has alsoclosed above the key resistance level of ₹120. This gives traders with a short-term perspective an opportunity to buy the stock at current levels. After a near-term downtrend, the stock found support at ₹106 in early this week and reversed higher triggered by a positive divergence in the daily price rate of change indicator.

With the recent rally, the daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI has also re-entered the neutral region. Further, the daily price rate of change indicator has entered the positive territory implying buying interest.

The near-term outlook is turning bullish for the stock. It has potential to trend upwards and reach the price targets of ₹126 and ₹129 in the upcoming sessions. Traders can buy the stock with a stop-loss at ₹118.5.

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

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