Essel Propack

We recommend a buy in Essel Propack from a short-term perspective. It is apparent from the charts that the stock has been on an intermediate-term up trend since its multi-year low of Rs 9.5 recorded in early March. In early July, the stock took support around Rs 23 and resumed its uptrend. The stock breached it 21- and 50-day moving averages in mid August and is currently positioned well above these averages. Moreover, on September 4, the counter surpassed a key resistance at Rs 32 by gaining 5 per cent. We note that there is an increase in volume over the past four trading sessions. Both the daily and weekly relative strength index (RSI) are featuring in the bullish zone. Considering that the stock’s intermediate-term up trend line is intact, we are bullish on it from a short-term horizon. We anticipate the stock’s rally to continue until it hits our price target of Rs 37 in the upcoming trading sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 31.5.

via BL