Technical Analysis

Filatex India (₹211.2): Buy

Yoganand D BL Research Bureau | Updated on April 26, 2018 Published on April 26, 2018

Investors with a short-term horizon can buy the stock of Filatex India at current levels. The stock has been witnessing buying interest over the last four trading sessions. In late March, it found support at ₹150 and changed direction triggered by positive divergence in daily price rate of change indicator. Since then, the stock has been in a short-term uptrend which is gathering strength now.

The stock recently breached a key resistance at ₹180 as well as its 200-day moving average. On Thursday, the stock jumped 6.5 per cent breaking through a key resistance at ₹200 and its 50 per cent Fibonacci retracement level of the prior downtrend. Now, the stock trades well above its 50- and 200-DMAs.

There has been an increase in daily volume over the past four trading sessions. The daily relative strength index features in the bullish zone. Moreover, the daily as well as the weekly price rate of change indicators hover in the positive terrain signifying buying interest.

Overall the short-term outlook is bullish for the stock. It can extend the uptrend and hit the price targets of ₹220 and ₹224 in the short term. Traders can buy with a stop-loss at ₹206.5.

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

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