Rolta India extended its bullish momentum and surged 7 per cent on Wednesday. Since the stock’s strong rally over the past two days shows optimism, traders can consider buying it at current levels. Its up move of 17 per cent this week has helped it breach the key resistance at ₹80. Both medium- as well as short-term trend for the stock are now up.
The stock is trading well above of its 21- and 50-day moving averages. The indicators on the daily chart such as relative strength index, moving average convergence divergence index are featuring in the bullish zone backing the stock’s short-term uptrend. Further, the indicators on the weekly chart are also hovering in the positive territory indicating strength. The short-term outlook is bullish for the stock. It can extend its current rally and reach the price targets of ₹91 and ₹93 in the forthcoming trading sessions. Buy the stock while maintaining a stop-loss at ₹85.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)