Technical Analysis

Ujjivan Financial Services (₹337.3): Buy

Yoganand D | Updated on April 10, 2019 Published on April 11, 2019

Investors with a short-term perspective can buy the stock of Ujjivan Financial Services at current levels. Resuming the short-term uptrend, the stock gained 3.7 per cent accompanied by above average volume on Wednesday.

Ever since recording a new low at ₹166.8 in October 2018, the stock has been in an intermediate-term uptrend, forming higher peaks and troughs. The stock has been in a short-term uptrend since taking support at ₹251 in February this year. A key support at ₹320 provided base for the stock in late March and also in early April. With the recent rally, the stock trades well above its 21-, 50- and 200-day moving averages now.

The daily price rate of change indicator has re-entered the positive terrain implying buying interest and the weekly indicator continues to feature in the positive territory. The daily relative strength index is likely to enter the bullish zone from the neutral region.

Overall, the short-term outlook is bullish for the stock. It can extend the uptrend and reach the price target of ₹351 and ₹358 in the ensuing trading sessions. Traders can buy with a stop-loss at ₹330.

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

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