The stock of Apollo Micro Systems seems to be a good buy as it has closed above a key resistance of ₹120 on Thursday. Thus, the stock is likely to establish a fresh round of rally and so, traders with short-term perspective can consider buying the stock.
After opening the year 2021 on the strong foot, the scrip rallied and hit a fresh 52-week high of ₹155.9 in mid-January. However, the stock was unable to extend the uptrend and it reversed to move downwards. The fall was sharp, and it had depreciated to ₹87 by mid-April, thereby losing about 44 per cent from January high.
But ₹87 acted a good base on the back of which the stock resumed to move up. But towards the end of May, it entered a sideways trend wherein it has been largely oscillating between ₹110 and ₹120 Tuesday. On Wednesday, the stock breached ₹120 with substantial volume, opening the door for further rally. Thus, traders can buy with stop-loss at ₹119 for a target of ₹132.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)