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Investors with a short-term perspective can buy the stock of Mangalam Cement at current levels. After an intermediate-term downtrend from the January high of ₹479, the stock found support at its 52-week low of ₹178 in mid-July this year. Subsequently, the stock changed direction and has been in a short-term uptrend, backed with good volumes.
Following a minor correction from the key resistance level of ₹250, the stock is gaining bullish momentum and has the potential to surpass this barrier.
On Tuesday, the stock jumped 5.4 per cent with above-average volume, strengthening the short-term uptrend. Moreover, this rally has decisively breached the 21- and 50-day moving averages. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone.
Other daily indicators such as moving average convergence divergence and price rate of change are featuring in the positive territory, implying bullish momentum.
The short-term outlook is bullish for the stock. It has the potential to break through the current resistance at ₹250 and hit the price targets of ₹257 and ₹262 in the short term. Traders can buy with a stop-loss at ₹241.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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