Technical Analysis

Voltas (₹572.6): Buy

Yoganand D BL Research Bureau | Updated on July 24, 2018 Published on July 23, 2018

The stock of Voltas gained 3.8 per cent accompanied by an above average volume on Monday, breaching a key resistance at ₹550. This rally gives short-term traders an opportunity to buy the stock at current levels.

Following a short-term downtrend from the key resistance level of ₹650 encountered in April this year, the stock found support at around ₹505 in June. The stock changed direction and began to move up in early July, after hovering above the key support at ₹505 for more than a month. This upward reversal is backed by positive divergence in daily indicators and oscillators.

Recently, the stock breached its 21- and 50-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 features in the neutral region. Both the daily and weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

The short-term outlook is bullish for the stock. It can continue to trend upwards and hit the price targets of ₹596 and ₹608 in the coming days. Traders can buy with a stop-loss at ₹560 levels.

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

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