Todays Pick

Aro Granite Industries (₹73.9)

Yoganand D BL Research Bureau | Updated on January 12, 2018 Published on May 29, 2017

Investors with a short-term perspective can consider buying the stock of Aro Granite Industries. The stock has been on a sideways consolidation phase in the broad band between ₹67 and ₹90 since July 2016. In mid-April 2017, the stock tested the upper boundary level of ₹90 and reversed direction triggered by negative divergence. The decline, however, didn’t last long as the stock's lower boundary at ₹67 provided support for the stock in last week. Subsequently, the stock bounced up from this support level.

Strengthening this up move the stock gained 5 per cent accompanied with above average volume on Monday. This up move has breached an immediate resistance at ₹71 which a bullish sign. Further, the stock has closed above its 200 moving average line. The daily relative strength index has entered the neutral region from the bearish zone and the weekly RSI continue to feature in the neutral region with an upward bias.

Both the daily and weekly price rate of change indicators have re-entered the positive territory implying buying interest. The short-term outlook is bullish for the stock. It can extend its up move and reach the price target of ₹77 and ₹78.5 in the coming trading sessions. Buy the stock with a stop-loss at ₹72.

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

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