The stock of Ujjivan Financial Services jumped 7.6 per cent accompanied by above average volume on Wednesday, breaking above a key resistance level of ₹200. This rally provides investors with a short-term view an opportunity to buy the stock at current levels.
Following a steep fall in late February and March, the stock registered a 52-week low at ₹124.5. Subsequently, it bounced up in late March and was on a sideways consolidation phase between ₹140 and ₹200 until recently. Within this sideways movement, the stock took support at ₹145 in late May and started to trend upwards. It had decisively breached the 21- and 50-day moving averages trades well above them.
There has been an increase in daily volume over the past three weeks, backing the ongoing uptrend. The recent breakthrough strengthens the bullish momentum. The daily RSI has entered the bullish zone from the neutral region and the weekly RSI has entered the neutral region from the bearish zone. Further, the daily price rate of change indicator hovers in the positive terrain and the weekly indicator has just entered this terrain indicating buying interest.
Overall, the short-term outlook is bullish for Ujjivan Financial Services. It can continue to trend upwards and hit the price targets of ₹220 and ₹224. Traders can buy the stock with a stop-loss at ₹206 levels.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)
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Published on
June 11, 2020
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