Tri­dent (₹71): Buy

The Hindu Business Line - - TECHNICALLY - YOGANAND D

In­vestors with a medium-term hori­zon can buy the stock of Tri­dent at the cur­rent price level. Fol­low­ing a medium-term down­trend from the new high of ₹109 recorded in Septem­ber 2017, the stock found sup­port at ₹51 in May 2018. It sub­se­quently changed di­rec­tion and be­gan to trend up. It took sup­port in the ₹51-55 band in July and Septem­ber 2018 and bounced up. Short­term trend is also up for the stock.

Last week, the stock gained 6.5 per cent with good vol­ume, breach­ing a key re­sis­tance at 67. There has been an in­crease in daily vol­ume over the past two weeks. While trend­ing up, the stock de­ci­sively breached its 50- and 200-day mov­ing av­er­ages in De­cem­ber and trades well above these av­er­ages. The daily rel­a­tive strength in­dex fea­tures in the bullish zone sup­port­ing the on-go­ing bullish mo­men­tum.

The weekly RSI is on the brink of en­ter­ing the bullish zone from the neu­tral re­gion. More­over, the daily as well as weekly price rate of change in­di­ca­tors hover in the pos­i­tive ter­ri­tory, im­ply­ing buy­ing in­ter­est. The medium-term out­look is bullish for Tri­dent. The stock can ex­tend its up­trend and hit the price tar­gets of ₹80 and ₹84 over the medium term with a small pause at ₹77 in the en­su­ing weeks. In­vestors with a medium-term per­spec­tive can buy the stock with a stop-loss at ₹65 lev­els.

(This rec­om­men­da­tion is based on tech­ni­cal anal­y­sis. There is a risk of loss in trad­ing)

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