Aptech

We recommend buying the stock of Aptech from a short-term perspective. It is evident from the charts of the stock that it encountered key resistance at around Rs 296 in September 2009 and began to decline. The stock's downtrend got accelerated in late October. However, it found support at around Rs 165 in late October, having completed a50 per cent fibonacci retracement of its prior up move. This support was retested during end-November and saw the stock consolidating in the range between Rs 165 and Rs 195 till early January. Recently, the stock moved up to surpass its 21 as well as 50-day moving average and also exceeded the resistance at Rs 195. We notice that there has been an increase in volumes over the past three trading sessions. The daily relative strength index has entered in to the bullish zone from the neutral region and weekly RSI is inching towards this zone in the neutral region. The daily moving average convergence and divergence indicator is on the brink of entering the positive territory that reinforces the bullish momentum. Our short-term outlook on the stock is bullish. We expect it to rally until it hits our price target of Rs 225. Traders with short-term perspective can consider buying the stock with Rs 193 as stop-loss.

via BL