Astral Ltd, part of the capital goods industry space, recouped losses after hitting a record high in August 2023 and is now trading above most of the crucial short- and long-term moving averages which suggest that bulls are here to stay.

Short-term traders can look to buy the stock now for a possible target of above Rs 2,200 in the next 4-6 weeks, suggest experts.

The stock hit a record high of Rs 2057 on 4th August 2023, but it failed to hold on to the momentum. It witnessed a price-wise correction.

“The stock has started to move in favour of the larger uptrend after the completion of the 8-month corrective phase. The stock price has started exhibiting higher highs and higher lows suggesting the emergence of a fresh uptrend,” Aditya Thukral, Founder & Analyst for AT Research & Risk Managers, said.

“Now that the prices are gradually moving higher along with the pickup in volumes which suggests the move is now in favour of bulls and the prices are ready for a fresh breakout of 52-week highs,” he said.

The stock took support above 1700 levels in January 2024 before bouncing back. The stock rose more than 3% in a week and over 7% in a month.The recent momentum helped the stock to trade above crucial short- and long-term moving averages, such as 5,10,30,50, and 200-DMA on the daily charts which is a positive sign for the bulls.If the momentum sustains the rally could stretch towards 2200 levels, suggest experts. On the downside, levels above 1700 will act as crucial support, suggest experts.

“The stock ticker is in an uptrend with the formations of higher highs and higher lows on the long term and short-term charts,” recommended Thukral.

“An uptrend continuation is expected to happen in the stock prices where longs should have a stop loss below 1785 on a weekly closing basis which is the lowest weekly close of the whole corrective structure,” he said.

The stock is well placed above all the major exponential moving averages viz. 50-day, 100-day, and 200-day.

The daily Relative Strength Index (RSI) is placed at 59.4. RSI below 30 is oversold and above 70 is considered overbought, Trendlyne data showed. The daily MACD is above its center and signal Line, this is a bullish indicator.

“This might be the start of a new bull market in the stock and conservatively, one can easily expect the levels of 2230 to be seen in the coming 4 to 6 weeks,” recommended Thukral.

“The positioning of RSI on daily as well as weekly charts is still below 60 and provides enough room for longs to enjoy further upside in the stock,” he added.

Analyst Disclaimer: SEBI Registration No. INH000013794. The Research Analyst and its associates/relatives may from time to time, have a long or short position in the securities or derivatives thereof of companies discussed herein.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

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