The stock of IL&FS Engineering and Construction Company gained 6.7 per cent, accompanied by above average volume on Thursday. Investors with a short-term horizon can consider buying the stock at current levels. The stock’s medium-term downtrend came to an end in mid-June at its long-term support level of Rs.67. Since then, the stock has been on a nascent short-term uptrend. It decisively breached a key resistance at Rs.80 in early July which turned into a key support and provided cushion recently.
The stock trades well above its 50- and 200-day moving averages. The daily moving average convergence divergence indicator is moving higher in line with the stock price. Though the stock faces a key resistance ahead, the short-term outlook is bullish. Traders with a short-term perspective can buy the stock with a stop-loss at Rs.84.5. It can extend the current rally and reach the price target of Rs.90 and then Rs.92 in the coming trading sessions.
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