The Hindu Business Line
KEI Industries (₹488.9): Buy
The stock KEI Industries was on highlight last week and had jumped 16 per cent. This rally underpins the long-term uptrend of the stock. Investors with a short-term perspective can buy it at current levels. Since the stock took support at ₹248 in October 2018, it has been in an intermediate-term uptrend. But, after recording a new high at ₹532 in May this year, the stock was on a corrective medium-term downtrend until last week.
Taking support at ₹400, the stock continued to trend upwards and appears to have resumed the intermediate-term uptrend.
On Friday, the stock gained 3.7 per cent extending the rally and breached a key resistance at ₹475 as well as the 50-day moving average. It hovers well above the 21- and 50-DMAs.
The short-term outlook is bullish. The stock can continue to trend upwards and reach the price targets of ₹508 and ₹520 in the coming trading sessions. Traders can buy the stock with a stop-loss at ₹477.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)