Praj Industries

We recommend a buy in the stock of Praj Industries from a short-term perspective. It is evident from the charts of Praj Industries that following a medium-term correction from June high of Rs 122 to July low of Rs 70, the stock found support at significant support level of Rs 70. Subsequently, the stock resumed its intermediate-term uptrend that has been in place since the March low of Rs 45. Moreover, it has been on a medium-term up trend from July low. On August 24, the stock surged almost 9 per cent, penetrating its 21- and 50-day moving averages. We notice that the volumes have been increasing for the past one week. The daily relative strength index (RSI) has entered in the bullish zone from the neutral region and the weekly RSI is heading towards the bullish zone. We are bullish on the stock from a short-term horizon. We expect the stock’s up move to continue until it hits our price target of Rs 112 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 96.

via BL