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The stock of Adani Transmission gained 6.5 per cent on Tuesday, breaching its short-term downtrend-line as well as the immediate resistance at ₹53.5. Since taking support at ₹26.5 in early March 2016, the stock has been on an intermediate-term uptrend. While trending up, the stock conclusively broke through a key long-term resistance at around ₹40 in early October which subsequently turned into a vital support level. After a sharp rally in late November, the stock started to witness a corrective decline that appears to have come to an end now.
Recently, the stock took support at its medium-term uptrend-line at around ₹51 and resumed its uptrend. The daily relative strength index has begun to move towards the bullish zone. The stock trades well above its 50- and 200-DMAs. Traders with a short-term view can consider buying the stock with stop-loss at ₹54 for targets ₹57.5 and ₹58.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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