Technical Analysis

Ganesh Housing Corporation (₹103): Buy

Yoganand D BL Research Bureau | Updated on July 31, 2018 Published on July 31, 2018

Investors with a short-term perspective can buy the stock of Ganesh Housing Corporation at current levels. On Tuesday, the stock gained 7.3 per cent accompanied by good volume, breaching a key immediate resistance at ₹100. Moreover, this rally has decisively surpassed its 21-day moving average resistance.

After an intermediate-term downtrend from the January high of ₹189, the stock found support at around ₹90 in mid-July. Subsequently, the stock changed direction, triggered by a positive divergence in the daily price rate of change and moving average convergence divergence indicators.

The stock has been in a near-term uptrend over the last two weeks. The buying interest is evident as the daily price rate of change indicator has entered the positive terrain and there is an increase in daily volume. The daily relative strength index is moving higher in the neutral region and the weekly relative strength index has entered the neutral region from the bearish zone.

The short-term outlook is bullish. The stock can move upwards and reach the price targets of ₹107.5 and ₹110 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹100.5.

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

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