Short-term traders can look to buy the stock for a possible bounce back towards 300 levels in the medium term, suggest experts.
The stock which is also part of the S&P BSE Small-cap index hit a record high of Rs 422 on 30th May 2023, but it failed to hold on to the momentum.
The small-cap stock underwent a price-wise correction which took the stock below 50 and 200-DMA in October 2023.
The stock found support above 240 levels multiple times in November before bouncing back in December 2023. The momentum also helped the stock to reclaim 50-DMA on the daily charts last week.
The trend is still on the downside, but traders can play the stock for a possible bounce back towards 300 levels as long as it holds above 250 levels, suggest experts.
In terms of price action, the stock is trading below the 100 and 200-DMA but above 5,10,30, and 50-DMA on the daily charts.
“Aptech stock has bottomed out near 245 zones and has indicated a decent pullback and for the second instance with a higher low formation pattern on the daily chart,” Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher Pvt., said.
“It has once again given a positive indication, moving past the important 50-EMA zone to improve the bias and anticipate for a further rise in the coming days,” she said.
“The RSI indicator after the slide has indicated a trend reversal signaling a buy and with the chart looking attractive, we recommend buying this stock for an upside target of 305 and a stop loss of 252,” recommended Parekh.
(You can now subscribe to our ETMarkets WhatsApp channel)
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
