Websol Energy System (₹116.7)

Investors with a high-risk appetite can buy the stock of Websol Energy System at current levels. On Wednesday, the stock gained 6 per cent accompanied by an above average volume breaching its 21- and 50-DMAs decisively. After recording a multi-year high of ₹139 in May 2017, the stock started to decline. However, the stock found support at ₹110 in late June and has been consolidating sideways since then.

There is an increase in daily volume in the last two trading sessions. The daily relative strength index is on the brink of entering the bullish zone from the neutral region. The weekly RSI has re-entered the bullish zone backing the stock’s primary uptrend. Both the daily and weekly price rate of change indicators are featuring in the positive territory indicating buying interest.

The short-term outlook is bullish for the stock. It can continue to rally and reach the price targets of ₹121.5 and ₹124 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹114.

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

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