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Investors with a short-term perspective can buy the stock of Ramco Industries at current levels. The stock gained 7.5 per cent accompanied with extraordinary volume on Thursday thereby taking its weekly gains to 15 per cent. This rally has emphatically breached a key resistance at ₹232. However, the stock currently tests the next significant resistance level of ₹250.
Since taking support at around ₹78 in February 2016, the stock has been on a long-term uptrend. Medium-term trend is also up for the stock from the November 2016 trough at ₹163 levels. The stock’s ongoing rally has decisively breached the 21- and 50-day moving averages and trades well above them. The daily as well as weekly relative strength indices have entered the bullish zone from the neutral region. Buying interest is evident as both the daily and weekly price rate of change indicators are featuring in the positive terrain. Both the long and medium-term uptrend are intact.
The stock can breach its current resistance at ₹250 and reach our price target of ₹258 and ₹263 levels in the forthcoming trading sessions. Buy the stock with a stop-loss at ₹242.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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