Mukta Arts (₹106.6)

The stock of Mukta Arts took support at ₹27 in mid-2015 and started to trend upwards. Since then, the stock has been on a long-term uptrend. In September 2016, the stock emphatically breached a significant long-term resistance at ₹85 which later had turned out to be a vital support . Thereafter the stock consistently took support at around ₹85 and bounced up. The stock had breached its moving average compression (21-, 50- and 200-day moving averages) at around ₹95 last week and trades well above these moving averages now.

On Monday, it decisively surpassed a key resistance at ₹102 by gaining 5 per cent with good volume. This rally has reinforced the bullish momentum. There has been an increase in the daily volume over the past eight trading days. The daily and weekly relative strength indices are featuring in the bullish zone, backing the stock’s on going uptrend. Buying interest is evident in the daily price rate of change indicator.

The short-term outlook is bullish for the stock. It can extend the ongoing uptrend and reach the price targets of ₹111 and ₹113 in the upcoming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹104.

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

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