Vimta Labs (₹232.3): Buy

The stock of Vimta Labs has gained 7 per cent with good volume on Monday, breaching a key resistance at ₹220. This rally gives a buying opportunity for investors with a short-term perspective.

Since taking support at around ₹60 in early 2016, the stock has been in a long-term uptrend. Moreover, the medium- as well as the short-term trends are up for the stock.

In early June the stock took support at ₹192 and resumed its uptrend. It currently trades well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI as well. Both the daily and weekly price rate of change indicators features in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for the stock. It can continue to trend upwards and reach the price targets of ₹242 and ₹246 in the coming trading sessions. Traders can buy with a stop-loss at ₹227.

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

Read the rest of this article by Signing up for Portfolio.It's completely free!

What You'll Get





TOPICS

MORE FROM BUSINESSLINE


 Getting recommendations just for you...
This article is closed for comments.
Please Email the Editor