Chart Check: This engineering & construction stock could rally 50% in next 6 months; time to buy?

Praj Industries, part of the engineering and construction products sector, hit a fresh record high in October and technical setup suggests that the rally is likely to continue.

The stock hit a fresh record high of Rs 461 on 12th October and most technical indicators suggest a possible uptrend to continue that could take the stock towards Rs 650 levels which translates into an upside of over 50 per cent, suggest experts.

Short-term traders can look to buy the stock now or on dips towards Rs 423-400.


The stock moved largely in a range since January 2021 where Rs 448 acted as a peak. It bounced back after hitting a low of Rs 289 on 23 May 2022 to break out of the consolidation range in October.

It is trading well above crucial short- and long-term moving averages such as 5,10,30,50,100 and 200-DMA which is a positive sign for the bulls.

The Relative Strength Index (RSI) below 30 is considered oversold and above is considered 70 overbought, Trendlyne data showed. MACD is above its center and signal line, this is a bullish indicator.

The stock price started its upmove from 59 (August 20) and made a high of 396 back in June 21. Profit booking followed but the stock bounced from the averages and made a new high of 448.25 (Jan 22).

“Praj Industries stock traded sideways mode taking support in Rs 285-300 area, but most of the time it bounced from the averages,” Bharat Gala, President - Technical Research, Ventura Securities, said.

“The super trend continuously was in Positive mode. Recently, the stock again started trading above averages & made a new weekly high of Rs 461.45 above all prior highs,” he said.

“The Vortex, KST & MACD indicator suggests a possible firm uptrend. The possible targets are Rs 650-800 in next 6-8 months,” added Gala.

“If the stock price corrects downwards the buy levels are Rs 423-400-381-363-351. A stop loss to be observed in the trade is Rs 337,” he recommends.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)