Wanbury

We recommend a buy in Wanbury from a short-term horizon. The stock has been on an intermediate-term uptrend, forming higher peaks and higher troughs, since March low of Rs 24. Following a corrective decline from August high of Rs 96, the stock found twin support around Rs 65. Subsequently the resumed the uptrend. It is trading well above 21-day and 50-day moving averages. On October 23, the stock gained 5 per cent. The daily relative strength index has entered the bullish zone and weekly RSI is also featuring in this zone. Daily and weekly moving average convergence and divergence indicators are in the positive territory. Considering that the stock’s intermediate-term uptrend-line is intact, we are bullish on a short-term perspective. We expect it to hit our price target of Rs 91. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 79.

via BL