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The stock of Ramky Infrastructure jumped 12.7 per cent accompanied by above average volume on Thursday. Investors with a short-term perspective and contrarian view can consider buying the stock at current levels.
Following medium as well as short-term downtrend, the stock recorded a 52-week low at ₹90 on Wednesday and found support at this levels. The level of ₹90 also being a significant long-term support cushioned the stock’s decline recently. Subsequently, the stock changed direction triggered by positive divergence in the weekly relative strength index and price rate of change indicator. The daily RSI has recovered from the oversold territory and has entered the neutral region. Taking support at ₹90, the stock appears to have re-gained the bullish momentum. The stock’s recent strong rally has breached the key immediate resistance at ₹100.
The short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹107 and ₹110 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹100.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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