NMDC (₹132.8)

Investors with a short-term perspective can consider buying the stock of NMDC at current levels. Breaching a key resistance level at ₹130, the stock gained 3 per cent on Monday.

Since registering a 52-week low at ₹102.8 in late June the stock has been in an intermediate-term uptrend. The stock found support at ₹117 in late September and resumed its uptrend. The stock has been in a medium-term uptrend since then. While trending up, the stock has emphatically breached its moving average compression (21-, 50- and 200-day moving average) at around ₹126 last week. The breach of the key immediate resistance at ₹130 has strengthened the uptrend.

The stock trades well above its 50 and 200-day moving averages. There has been a increase in daily volume over the past four trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is on the brink of entering this zone. 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 for the stock. It can trend upwards and reach the price target of ₹138.5 and ₹141 in the short term. Buy with a stop-loss at ₹130.

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

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