Punj LLoyd

We recommend a buy in Punj Lloyd from a short-term perspective. It is apparent from the charts of Punj Lloyd that the stock has been on a medium-term uptrend from its 52-week low of Rs 183, recorded in early July.

While trending up, the stock crossed over the 21- and 50-day moving averages in late July.

We notice high volume in advance days of the up move. After witnessing resistance at Rs 300 level recently, the stock is currently pausing in the band between Rs 280 and Rs 300.

The daily and weekly relative strength indices are rising in the neutral region towards the bullish zone. The stock’s medium-term up trendline is intact and it is trading well above its 21- and 50-day moving averages.

We are positive on the stock in the short-term horizon. We expect the stock to move up until it hits our price target of Rs 314 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 269.