Indian Rayon: Set for a rally

Deepak Singh Tanwar

MUMBAI, December 8: Indian Rayon stock seems to be ready for a sharp rally. Earlier, the stock had fallen from a peak of Rs 149 in September to Rs 97 in the first week of October. However, since then the stock has moved in a range of Rs 100-116. While the stock moved in a narrow range, the daily trading volumes have grown steadily which hints at accumulation.

Besides, while the stock made a double bottom at Rs 97, the 21-RSI has also formed a higher bottom which is again a positive signal. The medium term MACD has also moved above the triggerline besides forming a higher bottom. All these indicators hint at a positive development. Traders can take a long position at the current level of Rs 101 for short-term gains. Keep a stop loss at Rs 97.

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