Todays Pick

Astra Microwave Products (₹123.5)

Yoganand D BL Research Bureau | Updated on January 18, 2018 Published on January 15, 2018

Investors with a short-term perspective can buy the stock of Astra Microwave Products at current levels. The stock has been in a medium-term uptrend since recording a 52-week low at ₹101 in early November 2017. While trending up the stock decisively breached its 21- and 50-day moving averages on January 1. But, the stock encountered a key resistance at around ₹120 and started to move sideways testing this resistance level.

On Monday, the stock gained 5.3 per cent accompanied with above average, conclusively breaking above the key immediate resistance level. This rally has strengthened the medium-term uptrend. 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 towards the bullish zone. The daily price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish for the stock. It can extend the uptrend and reach the price targets of ₹128.5 and ₹131 in the coming trading sessions. Buy the stock with a stop-loss at ₹120.5.

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

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