Mundra Port and Sez

We recommend a 'buy' in Mundra Port and Special Economic Zone (SEZ) from a short-term perspective. It is apparent from the charts that the company has been on a medium-term uptrend from early July low of Rs 388, that was also a 52-week low. The stock has been trending up shaping higher peaks and higher troughs since then. In early August, the stock crossed over its 50-day moving average and is currently trading well above this average. We notice high volume during the advance days of the medium-term uptrend. The daily relative strength index is rising in the neutral region towards the bullish zone. Moving average convergence and divergence is rising in line with the stock and is featuring in the positive area. The medium-term up trendline is also intact. We are bullish on the stock from a short-term perspective. We anticipate the stock to rally until it hits our price target of Rs 650 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 560.