Technical Analysis

Deep Industries (₹150): Buy

Yoganand D BL Research Bureau | Updated on April 23, 2019 Published on April 24, 2019

The stock of Deep Industries had gained 6 per cent accompanied by good volume on Tuesday, surpassing an immediate resistance at ₹146. Investors with a short-term perspective can buy this small-cap stock at current levels.

Since taking support at ₹84 in early October 2018, the stock has been in an intermediate-term uptrend. The short-term trend is also up for the stock. In early March, the stock decisively breached the 50- and 200-day moving averages and has been trading above the said DMAs since then.

The recent rally has strengthened the bullish momentum. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has also re-entered the bullish zone from the neutral region. Moreover, the daily and weekly price rate of change indicators features in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can extend its up move and hit the price targets of ₹156 and ₹159 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹146.5.

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

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