NRB Bearings (₹172.7): Buy

The stock of NRB Bearings gained 5.8 per cent accompanied with good volume on Monday, breaching a key resistance at ₹165. Investors with a short-term perspective can buy the stock at current levels.

In early February, the stock found support at around ₹145 and reversed higher. The stock was on a sideways consolidation phase in the band between ₹150 and ₹165 until it broke above the upper boundary on Monday. With this rally, the stock appears to have resumed its intermediate-term uptrend that has been in place since August 2016. Moreover, the stock trades well above its 21- and 50-day moving averages that add strength.

The daily as well as the weekly relative strength indices have entered the bullish zone from the neutral region. Both the daily and weekly price rate of change indicators feature in the positive territory implying buying interest.

Overall the short-term outlook is bullish. The stock can continue its bullish momentum and knock the price targets of ₹180 and ₹183.5 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹169.

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

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