Technical Analysis

NCC (₹86.5): Buy

Yoganand D BL Research Bureau | Updated on February 14, 2019 Published on February 15, 2019

 Investors with a short-term perspective can consider buying the stock of NCC at current levels. The stock jumped 4.5 per cent accompanied by above average volume on Thursday, breaching the 21- and 50-day moving averages.

Since taking support at ₹63 in late October 2018, the stock has been on a medium-term uptrend. After a near-term corrective down-move, the stock took support at around ₹78 in late January this year. Subsequently, the stock changed direction triggered by a positive divergence in the daily relative strength index. Significant support at ₹78 is providing strong base for the stock.

There has been an increase in daily volume over the past three trading sessions. The daily relative strength index is on the brink of entering the bullish zone from the neutral region and the weekly RSI hovers in the neutral region. The stock has gained almost 10 per cent this week. The short-term outlook is bullish. The stock can extend the uptrend and reach the price targets of ₹90 and ₹92 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹84.5.

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

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