Aptech stands apart in dicey market, bounces back from support
When nearly half of the stocks make a cautious positive move and remaining half are in the negative territory, its Aptech Limited, the IT training company, which has been moving almost consistently up during Tuesday’s trade with 7 per cent plus gains from previous close.
After two days sharp fall, the Indian stock markets gave a dicey move in early trade on Tuesday with 1,261 advances and 1,059 declines. In this amongst all the caps, Aptech is the only stock moving exceptionally well after three consecutive downbeat sessions.
Aptech had witnessed a strong downward sloping trendline resistance at 366 levels on January 24 and thereby gave a sharp downside of nearly 32 per cent in just 8 trading sessions. Thereafter the stock recovered and resisted yet again at 354-355 levels which is again the trendline level on February 14 after a bounce back. The stock corrected for 3 consecutive days, but took a support at 61.8 per cent retracement of the prior upward rally. Simultaneously the stock also took a support of its 200 days EMA at the said levels.
The bounce is supported by volume spurt and 14-period RSI crossing the average 50 levels. Hence, the stock may witness a potential upside, if it sustains above the 330 levels on closing basis.