Deep Industries (₹140.8): Buy

Investors with a short-term perspective can buy the stock of Deep Industries at current levels. The small-cap stock had recently breached a key resistance level of ₹125.

On Monday, the stock surged 7 per cent accompanied with an above average volume, reinforcing the bullish momentum. This rally has surpassed the next resistance level of ₹137 as well as its 200-day moving average. There has been an increase in daily volumes over the past three trading sessions. Since taking support at ₹84 in early October this year, the stock has been on a short-term uptrend. While trending up, the stock has decisively breached the key resistances at ₹100 and ₹125.

The stock hovers well above its 21- and 50-day moving averages. The daily relative strength index features in the bullish zone and the weekly RSI has entered the bullish zone from the neural region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can extend its up move and hit the price targets of ₹146.5 and ₹150 in the coming trading sessions. Buy the stock with a stop-loss at ₹137.5.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor