The stock of Sanghvi Movers surged 3.8 per cent with good volumes on Tuesday, bouncing from a key medium-term support level ₹303. This gives a buying opportunity for traders with a short-term horizon. The stock is on a long-term uptrend, but had declined after registering an all-time high of ₹408 in early August. This fall was arrested recently at the key medium-term support level around ₹303.
The stock gained, forming a bullish engulfing candlestick pattern signalling a trend reversal. Moreover, the positive divergence in the daily relative strength index also backs the stock’s trend reversal. The daily RSI has entered the neutral region from the bearish zone and the weekly RSI is in the neutral region. With this recent rally, the stock is receiving bullish momentum. The rally can extend and reach the price target of ₹332 and ₹338 in the approaching trading sessions. Buy the stock with a stop-loss at ₹311.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)