Today's Pick: Autolite India (₹81.5)

Investors with a short-term perspective can buy the stock of Autolite (India) at current levels.

Since recording a 52-week high at ₹110.6 in September 2017, the stock has been in an intermediate-term downtrend. Following a sharp fall in January, the stock found support at ₹55 last week. Subsequently, the stock reversed higher completely retracing the fall witnessed in January.

On Monday, the stock jumped 10 per cent with good volume decisively breaching a key long-term resistance at ₹75. There has been an increase in daily volume over the past four trading sessions. The stock 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 is on the brink of entering the bullish zone from the neutral region. With the ongoing short-term uptrend, the stock is gaining buying interest and it can extend the up move in the coming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹79.5. Targets are ₹85 and ₹87.

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

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