Technical Analysis

Ujjivan Financial Services (₹231.5): Buy

Yoganand D BL Research Bureau | Updated on December 04, 2018 Published on December 04, 2018

The stock of Ujjivan Financial Services jumped almost 6 per cent accompanied with above average volume on Tuesday. With this rally, the stock gives an opportunity to buy it from a short-term perspective.

After a sharp fall in the months of September and October this year, the stock recorded a 52-week low at ₹166 in late October. Triggered by positive divergence in the daily relative strength index, the stock changed direction and has been on a short-term uptrend since then. While trending up, the stock decisively breached key resistances at ₹200 and ₹220 levels. Moreover, the stock has breached its 21-day moving average and trades well above it. The daily RSI is charting higher in the neutral region and the weekly RSI is on the brink of entering the neutral region from the bearish zone.

The outlook is positive for the stock. It can extend the short-term uptrend and reach the price targets of ₹241 and ₹246 in the ensuing trading sessions. Traders with a short-term view can buy with a stop-loss at ₹226.5.

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

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