Nilkamal

We recommend a buy in the stock of Nilkamal from a short-term perspective. It is evident from the charts that the stock took support around Rs 43 that is a significant long-term support level in March and has been in an intermediate-term uptrend since then. The stock broke through key resistance at Rs 110 with good volume in late August and continued to trend upward. However, following a short-term sideways movement in the range of Rs 132 and Rs 154, the stock broke out of this range by gaining almost 7 per cent on October 14. It also surpassed the long-term resistance at Rs 150. The stock is trading well above its 21-day and 50-day moving averages. There is an increase in volume over the past two trading sessions. Both the daily and weekly relative strength indices (RSI) are featuring in the bullish zone. We are bullish on the stock from a short-term perspective. We expect it to rally until it hits our price target of Rs 180. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 155.

via BL