Today's Pick - Nectar Lifesciences

We recommend a buy in Nectar Lifesciences at current levels, from a short-term perspective. From the charts of the company, it is clearly visible that it has been on an intermediate-term up-trend from its March low of Rs 168 (a 52-week low).

Nectar Lifesciences has been forming higher peaks and higher bottoms since then. The intermediate-term up-trendline is still in place. In June, the stock crossed over its 50- and 200-day moving average and it is currently trading well-above these lines. We notice good volume over the past three weeks.

The daily and weekly relative strength indices are featuring in the bullish zone, above 60 levels. The moving average convergence and divergence is also hovering in the positive territory.

Moreover, on September 9, the stock gained Rs 20 or 5.7 per cent, accompanied with heavy volume. Our short-term outlook for the stock is bullish. We expect the stock to move up further in the upcoming trading sessions and hit our price target of Rs 418. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 358.

via BL