Udaan - Buy AIA Engineering Ltd :: Edelweiss

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AIA Engineering Ltd, a diversified company into cement, mining and power has been positing consistent results QoQ. The stock price has been in a strong bullish trend from February 2009 when it was trading around Rs.110.

The price has risen in a cyclical manner with a rise of average 42% after a consolidation; since 2013, we have seen six such cycles. The breakout of trendline is visible at the Rs.1,090 levels on daily chart. As there is a famous rule in technical analysis "history repeats itself", we expect it to happen this time too. Calculating it from the low of Rs.982, the 42% rise targets at sub Rs.1400 levels.

Looking at the weekly chart, stock has been in strong uptrend which is depicted by formation of higher highs and higher lows. It is also clearly visible that upmove has been fast and furious vis-à-vis correction which clearly indicates underlying strength in the stock. Beside this stock has never broken its key weekly support of 21 weeks moving average. Stock has recently tested its 21 WEMA and bounced back which clearly depicts demand near its support zone. We expect stock to breach its previous all time high.

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https://www.edelweiss.in/research/Udaan--Buy-AIA-Engineering-Ltd/10005459.html