REC (₹155.7): Buy

The Hindu Business Line - - MARKET RADAR - YOGANAND D

In­vestors with a short-term hori­zon can buy the stock of REC at cur­rent lev­els. The stock has been in an in­ter­me­di­ate-term up­trend since tak­ing sup­port at around ₹100 in early De­cem­ber 2018. While trend­ing up, the stock de­ci­sively breached a key re­sis­tance at ₹127 in late Fe­bru­ary this year and con­tin­ued to trend up­wards. Key re­sis­tance at around ₹152 had lim­ited the stock’s rally in the months of March and April.

Fol­low­ing a cor­rec­tive de­cline, the stock sur­passed this re­sis­tance on Tues­day, by gain­ing 2.4 per cent with above-av­er­age vol­ume. With this rally, the stock ap­pears to have re­sumed the in­ter­me­di­ate-term up­trend. More­over, the short­term trend is also up for the stock. It is now hov­er­ing well above the 50- and 200-day mov­ing av­er­ages.

The daily and weekly price rate of change in­di­ca­tors are hov­er­ing in the pos­i­tive ter­rain, im­ply­ing buying in­ter­est. The out­look is bullish for the stock. The short-term tar­gets are ₹162 and ₹165. Traders can buy with stop-loss at ₹152.5.

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

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