Investors with a short-term perspective can buy the stock of Shanthi Gears, a small cap company at current levels. The stock zoomed 13 per cent with an above average volume on Wednesday, conclusively breaking above the key resistances at ₹135 and ₹140.
After recording a 52-week low at ₹120 on July 9, the stock changed direction. Since then, the stock has been in a near-term uptrend. In the recent rally, the stock has decisively breached its 50- and 200-day moving averages and trades well above them.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is featuring in the neutral region with an upward bias. Moreover, the daily and weekly price rate of change indicators features in the positive territory implying buying interest.
The short-term outlook is bullish for the stock and it can extend its up-move in the ensuing trading sessions. Targets are ₹150 and ₹152.5. Traders can buy the stock with a stop-loss at ₹140.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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