REC (₹155.7): Buy
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.)