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Investors with a short-term perspective can buy the stock of Ganesh Housing Corporation at current levels. The stock has been in a long-term uptrend since taking support from the November 2016 low of ₹58.3. The corrective fall from the high of ₹157.4 made in July found support at ₹107 — the 50 per cent Fibonacci retracement level, in early November this year.
Triggered by positive divergence in daily price rate of change and moving average convergence divergence indicators, the stock changed direction in early November. Since then, the stock has been in a short-term uptrend, backed with good volume. While trending up, the stock has decisively breached the key resistance at ₹125 last week.
On Tuesday, the stock gained 6.8 per cent accompanied with extraordinary volume, breaching a key immediate resistance at ₹132. The stock trades well above its 21 and 50-day moving averages. The daily and weekly relative strength indices feature in the bullish zone implying bullishness. Moreover, the daily as well as weekly price rate of change indicators hovers in the positive territory indicating buying interest.
Short-term outlook is bullish for Ganesh Housing Corporation. The stock can trend upwards and reach the price targets of ₹147 and ₹150 in the short term. Traders can buy the stock with a stop-loss at ₹137.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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