MTF Stock Pick Buy Rural Electrification Corporation Ltd For Target Rs. 175 - HDFC Securities
After falling from a high of 168 touched in early June 2021, REC found support around the 140 levels. These levels also coincided with the 50 day SMA, indicating it is a strong support.
After consolidating in a range between the 140-145 levels for the last few sessions, REC has broken out of this range on Wednesday on the back of above average volumes. This augurs well for the uptrend to continue.
Technical indicators are giving positive signals as the stock is trading above the 50 day SMA and is now on the verge of moving above the 20 day SMA. Daily momentum indicators like the 14-day RSI have bounced back from oversold levels and are in rising mode now. This augurs well for the uptrend to continue.
With the intermediate and long term technical setups too looking positive, we believe the stock has the potential to move higher in the coming weeks and therefore recommend a buy. Our entry levels with stop loss and targets have been mentioned above.
Buy Rural Electrification Corporation Ltd Up to 1-3 Months @ Buying Range 147-151 CMP 149.6 TGT 175 SL 141
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