Investors with a short-term perspective can buy The New India Assurance Company (NIACL) stock at current levels. The stock found support in the band between ₹74 and ₹80 in March 2020 and reversed direction. Since then, the stock has been on an intermediate-term uptrend.

Following a corrective decline, the stock took at ₹100 in November 2020 and continued to trend upwards. The stock has been on a medium-term uptrend since then. While trending up, the stock had decisively breached a key resistance at ₹125 in early December last year and strengthened the uptrend. After a sideways movement, the stock gained 3.6 per cent accompanied by extraordinary volume on Wednesday, breaking above a key hurdle at ₹134. There has been an increase in volume over the past three trading sessions.

The stock has surged 8.2 per cent with good volume so far this week. It trades well above the 21- and 50-day moving averages. Overall, the short-term outlook is bullish for the stock. It can trend upwards and reach the price targets of ₹145 and ₹148 in the ensuing trading sessions. Traders can buy the stock with a stop-loss at ₹135.

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

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