Investors with a short-term horizon can consider buying the stock of Meghmani Organics at current levels. Decisively breaking above a key resistance level of ₹65, the stock jumped 4.8 per cent accompanied by extraordinary volume on Monday.

Following an intermediate-term downtrend, the stock found support at ₹42 in February this year. The stock subsequently changed direction and has been in a medium-term uptrend since then. While trending up, the stock had conclusively breached a key resistance at ₹55 in early March this year. The stock hovers well above its 21- and 50-day moving averages. After a near-term sideways movement between ₹60 and ₹65, the stock has resumed its medium-term uptrend recently.

There is an increase in daily volume over the past two trading sessions. The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. Moreover, the daily as well weekly price rate of change indicator features in the positive territory implying buying interest.

The short-term outlook is bullish. The stock can continue to trend upwards and reach the price targets of ₹70 and ₹72 in the coming trading session. Buy the stock with a stop-loss at ₹66.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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