11 March 2012

Aptech (Rs 90.1): Buy ::Business Line

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We recommend a buy in the stock of Aptech from a short-term perspective. It is seen from the charts of the stock that in early January this year, it took support from its long-term base at around Rs 65 and reversed its direction. This reversal was helped by a positive divergence in daily relative strength index. Since then, the stock has been on a modest medium-term uptrend. But following a small correction, the stock took support at Rs 83 in the previous week and started to move higher.
On March 7, the stock surged 4.5 per cent breaching its 21- and 50-day moving averages. With this up move, the stock appears to be resuming its uptrend. We notice that there has been an increase in volumes over the past three trading sessions. Both daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone.
The daily price rate of change indicator has entered into the positive terrain and weekly indicator is featuring in this terrain implying buying interest. We are bullish on the stock from a short-term perspective. We anticipate its current up move to continue and touch our price target of Rs 93 or Rs 96 in the ensuing trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 87.5.

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