Excel Crop Care

We recommend a buy in the stock of Excel Crop Care from a short-term perspective. It is apparent from the charts that the stock began to trend down after encountering resistance around Rs 170 in late May. It was on a medium-term downtrend till it found support in the range of Rs 106 and Rs 110 in mid-August. The stock subsequently resumed its intermediate-term uptrend that has been in place since the March low of Rs 60. On September 8, the stock broke through its short-term resistance level at Rs 130, by gaining 6 per cent. There is an increase in volume over the past two trading sessions. With this gain, the daily and weekly relative strength indices have entered the bullish zone. The stock is trading way above its 21- and 50-day moving averages. Moreover, the daily moving average convergence and divergence indicator is on the brink of re-entering the positive territory. We are bullish on the stock from a short-term horizon. We expect it to move up until it hits our price target of Rs 150. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 129.

via BL