Short-term traders can look to buy the stock now or on dips for a possible target of Rs 750-780 level in the next 2 months, suggest experts.
The stock hit a 52-week high of Rs 828 on 9th November 2022 but it failed to hold on to the momentum. The stock formed a strong base above Rs 555 levels which also corresponds to the 52-week low recorded on 29th March 2023.
The stock witnessed a strong rally but it lost momentum around Rs 680-690 levels in June. The stock is now hovering around crucial resistance levels on the daily charts.
However, on the weekly charts, it gave a breakout from a flag pattern which suggests that bulls are likely to remain in control. Bullish flag patterns are formed in stock with strong uptrends.
The pole is formed from the vertical rise seen in the stock price while the flag resembles the period of consolidation. A breakout from the flag on the higher side results in a strong continuation of the upmove.
The stock is also on the verge of recording golden crossover on the weekly charts where the short-term moving average (50-WMA) moves above the long-term moving averages (200-WMA).
ET CONTRIBUTORSIn terms of price action, the stock is trading above most of the crucial short and long-term moving averages on the daily charts, which is a positive sign for the bulls.
The daily Relative Strength Index (RSI) is at 57.3. RSI below 30 is considered oversold and above 70 is considered overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.
“The broader market is at an all-time high and bullish momentum is still on. From a stock perspective, underperforming stocks have started to pick up movement which offers a good risk reward set up in the current overbought market,” Kapil Shah, Technical Analyst, Emkay Global Financial Services and Trainer at FinLearn Academy, said.
“One such stock is Concor which is rising from a lower band of 123 weeks lower band of consolidation. The stock which is in a bullish trend which is rising from the lower band has the potential to test the upper band of the range,” he said.
“Stock has breached the falling trend line and horizontal line which is a bullish continuation sign. It has taken support at a long-term moving average. In recent context, the stock is giving breakout from flag pattern, it indicates resumption of a positive move after brief fall,” highlighted Shah.
“Many technical factors harp on the bullish tone which make Concor buy candidate stock. It can be accumulated in the range of Rs 680 to 670 with a stop loss of Rs 640 on a closing basis. It has an upside potential of Rs 750 to 780. Time to pan out above view can be 2 months,” he recommends.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
