Datamatics Global Services (₹119.5)

Investors with a short-term horizon can consider buying the stock of Datamatics Global Services at current levels. The stock surged 7 per cent accompanied with above average volume on Tuesday, breaking above a key resistance as well as 200-day moving average at ₹111 levels. Moreover, the stock has also surpassed its 21-day moving average, confirming the short-term trend reversal. Since taking support at ₹93 in late May the stock has been on a short-term uptrend.

After the recent break above this key resistance level of ₹111, the stock’s uptrend has strengthened now. The daily relative strength index has entered the bullish zone from the neutral region. Likewise, the daily price rate of change and moving average convergence divergence indicators have entered the positive territory backing the stock's uptrend. The weekly indicators are charting upwards. With the overall bullish undercurrent, the short-term outlook is positive for the stock. It can extend the current rally and reach the price targets of ₹124.5 and ₹127 in the ensuing trading sessions. Buy the stock with a stop-loss at ₹117.

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

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