Investors with a short-term perspective can consider buying Nitin Spinners, a small-cap stock. A significant medium-term support at ₹66 held well for the stock between August and December 2016. After a sideways consolidation phase in the range between ₹66 and ₹82, the stock made an upward breakout in early February this year. Since taking support at ₹66 in December, the stock has been on a medium-term uptrend. Short-term trend is also up.
On Friday, the stock rose 4.8 per cent breaching its 21-DMA and continued its short-term uptrend. The stock hovers well above its 50- and 200-DMAs. However, a key resistance is ahead for the stock at ₹100. There is an increase in daily volume over the past two trading sessions. The stock has the potential to breach the immediate resistance and reach the price targets of ₹103 and ₹105 in the coming trading sessions. Buy the stock with a stop-loss at ₹96.6.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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