Technical Analysis

Repco Home Finance (₹417.6): Buy

Yoganand D Updated on January 07, 2019

Investors with a short-term perspective can buy the stock of Repco Home Finance at current levels.

On Monday, the stock gained 5.7 per cent accompanied by above average volume breaking above a key resistance at ₹405. After taking support at ₹292 in October 2018, the stock changed direction triggered by positive divergence in the daily relative strength index. Since then, the stock has been on a medium-term uptrend. Short-term trend is also up for the stock.

After testing the key resistance at around ₹405 for two weeks, the stock conclusively surpassed it on Monday. The stock trades well above its 21- and 50-day moving averages. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI feature in the neutral region. Both the daily and weekly price rate of change indicators hover in the positive territory implying buying interest.

The short-term outlook is bullish for stock. The ongoing uptrend can extend and reach the price targets of ₹435 and ₹443 in the ensuing trading sessions. Traders with a short-term view can the stock with a stop-loss at ₹408.5.

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

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