Vinay Rajani
Action Construction is trading 52 percent lower than its January 2018 high of 204. On the long-term charts, the stock has turned extremely
oversold.
For the last 3 months, the stock has been trading in a consolidation zone of 85 to 105. In the month of October and December 2018, the stock took support on the upward sloping trend line on the weekly charts. This trend line has acted nicely in the past.
For the week ended 4th Jan 2018, the stock broke out from the contracting range on the daily charts with a higher delivery percentage and
higher volumes.
Indicators like MACD and Oscillator like RSI has turned bullish on the weekly charts. The stock price has recently taken support on its 200-
week Exponential moving average and reversed north.
Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at 95, for the target of 113, and
keeping a stop loss at Rs 90 on a closing basis.
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