Todays Pick

Nitin Spinners (₹124.2)

Yognand D | Updated on January 09, 2018 Published on November 01, 2017

Investors with a short-term perspective can buy the stock of Nitin Spinners at current levels. The stock has been in a long-term uptrend since taking support at around ₹50 in early 2016. However, the stock recorded an all-time high of ₹145 in May 2017 and started the decline. The stock was on a medium-term downtrend until it found support at ₹101 in early October. Subsequently, the stock changed direction triggered by positive divergence and has been in a short-term uptrend since early October.

On Wednesday, the stock jumped 8.7 per cent accompanied by extraordinary volume breaking above a key resistance level at ₹120. With this rally, the stock’s short-term uptrend has gained strength. Moreover, the stock trades well above its 50 and 200-day moving averages. There has been an increase in daily volume over the past four trading sessions.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is likely to enter this bullish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest. The short-term outlook is bullish for Nitin Spinners. The uptrend can extend and reach the price targets of ₹129.5 and ₹132. Traders can buy the stock with a stop-loss at ₹121.5.

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

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