The stock of Patel Engineering zoomed 6 per cent on Thursday, conclusively breaking a key resistance at ₹75. It has also decisively breached the 50-day moving average. Investors with a short-term horizon can consider buying the stock at current levels. Since its early September low of ₹58, the stock has been on a short-term uptrend.
The stock now trades well above its 21- and 50-day moving averages. The stock has been witnessing an increase in trade volumes. The daily relative strength index is in the bullish zone while the weekly RSI is in the neutral region, rising towards the bullish zone. Other indicators, such as the moving average convergence divergence and price rate of change are hovering in the positive territory, implying bullish momentum. The stock can sustain its ongoing uptrend and reach the price targets of ₹80.5 and ₹82.5 in the upcoming sessions. Buy the stock with a stop-loss at ₹75.5.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)