The stock of Venus Remedies, a small-cap pharma company surged almost 7 per cent with extraordinary volume on Wednesday. This rally has breached the upper boundary of a narrow sideways movement at Rs.149 and closed well above its 21- and 50-day moving averages.
Investors with a short-term view can buy the stock at current levels. Following a medium-term downtrend, the stock found support at around Rs.130 in early June and changed direction. Since then, the stock has been on a nascent uptrend.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI is moving higher in the neutral region. Moreover, the daily price rate of change indicator which features in the positive area implies buying interest. The stock can proceed with the ongoing uptrend and reach the price target of Rs.160.5 and then Rs.163.5 in the upcoming sessions. Buy the stock with a stop-loss at Rs.150.5.
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