Technical Analysis

Meghmani Organics (₹67.7): Buy

Yoganand D BL Research Bureau | Updated on April 15, 2019 Published on April 16, 2019

Investors with a short-term horizon can consider buying the stock of Meghmani Organics at current levels. Decisively breaking above a key resistance level of ₹65, the stock jumped 4.8 per cent accompanied by extraordinary volume on Monday.

Following an intermediate-term downtrend, the stock found support at ₹42 in February this year. The stock subsequently changed direction and has been in a medium-term uptrend since then. While trending up, the stock had conclusively breached a key resistance at ₹55 in early March this year. The stock hovers well above its 21- and 50-day moving averages. After a near-term sideways movement between ₹60 and ₹65, the stock has resumed its medium-term uptrend recently.

There is an increase in daily volume over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. Moreover, the daily as well weekly price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish. The stock can continue to trend upwards and reach the price targets of ₹70 and ₹72 in the coming trading session. Buy the stock with a stop-loss at ₹66.

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

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.

  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.

  • Ad free experience

    Experience cleaner site with zero ads and faster load times.

  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor