Datamatics Global Services (₹122.8): Buy

Yoganand D Updated on August 21, 2018

Investors with a short-term perspective can buy the stock of Datamatics Global Services at current levels. Following a sideways consolidation in the range between ₹96 and ₹111 for about two-and-a-half months, the stock has decisively broke out of this range on Monday, by gaining 6.9 per cent. Moreover, the stock has also breached its 200-day moving average placed at ₹118 levels.

There has been an increase in daily volume over the past five trading sessions. The daily relative strength index is featuring in the bullish zone while the weekly RSI is charting upward in the neutral region. Both the daily and weekly price rate of change indicators are featuring in the positive territory implying buying interest.

The stock has been in a near-term uptrend recently. It trades well above its 21- and 50-day moving averages as well.

The short-term outlook is bullish for the stock. It can extend the current up move and reach the price targets of ₹128 and ₹130.5 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹120.

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

Published on August 20, 2018
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