Investors with a short-term perspective can consider buying the shares of National Aluminium Company. The stock surged 4.5 per cent on Monday, its sixth consecutive higher daily close.
The stock’s sharp fall from the August high of Rs.40.2 halted at a low of Rs.28 on August 25. It has surged about 32 per cent since then. During this rally, it has breached a key resistance in the Rs.34-36 zone decisively. Immediate support is at Rs.36.4, which is likely to limit the downside for the stock.
Key supports thereafter are at Rs.36 and Rs.35.5. A rise to Rs.38 is possible now. A strong break above Rs.38 can take it further to Rs.40. Traders with a short-term perspective can go long. Stop-loss can be kept at Rs.36.2 for a target of Rs.37.9. Intraday dips to Rs.36.5 can be used to accumulate long positions. The rise to Rs.38 will get negated if the stock declines below Rs.36.4. It will increase the chances of a fall to Rs.35.5 thereafter.
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