Deep Industries (₹236)

The stock of Deep Industries gained 4.4 per cent with above average volume on Wednesday, breaching key resistance at ₹220 and ₹230 levels. Moreover, the stock has surged 9.7 per cent so far this week accompanied with heavy volume. However, the stock has a key resistance at ₹240 levels. With the on going bullish momentum, the possibility of breaking this barrier is high.

Investors with a short-term perspective can consider buying the stock at current levels. Key support in the band between ₹200 and ₹202 has been providing base for the stock since August 2017. The stock started the moving higher after taking support from the band last week.

While trending up, the stock has decisively breached its 21- and 50-day moving averages and hovers well above them. The daily relative strength index feature in the bullish zone while the weekly RSI is moving upwards in the neutral region. Volumes are increasing over the past five trading sessions.

The short-term outlook is bullish for the stock. It can surpass the immediate resistance and reach the price targets of ₹246 and ₹252 in the coming sessions. Traders can buy with a stop-loss at ₹231.

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

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