Triveni Engineering Industries (₹90.6)

Investors with a short-term perspective can consider buying the stock of Triveni Engineering Industries at current levels. The stock has been in a medium-term uptrend since taking support around ₹68 in late June. However, after marking an all-time high of ₹107 in early August, the stock started the decline.

After retracing 61.8 per cent fibonacci retracement level of the prior up leg, the stock found support at ₹85 last week. The stock jumped 5 per cent with above average volume on Thursday, breaching a key resistance at ₹89. With this rally, the stock appears to be resuming its medium-term uptrend. There has been an increase in daily volume over last few trading sessions.

The daily and weekly relative strength indices are featuring in the neutral region with positive bias. The daily price rate of change indicator is on the brink of entering the positive territory from the neutral region while the weekly Price ROC features in the positive implying buying interest. Near-term outlook is bullish for the Sugar stock. It can extend the rally and reach the price targets of ₹94.5 and ₹96.5. Traders can buy the stock with a stop-loss at ₹88.5.

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

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