Poly Medicure soars nearly 4% despite a weak market! Time to buy?

POLYMED has climbed about 4% and is one of the top gainers amongst Nifty 500 stocks. 

The stock of Poly Medicure jumped over 4% on Thursday amidst strong buying interest at lower levels. Despite opening lower, the stock attracted strong volumes and formed a bullish engulfing candle on the technical chart. The volume is nearly twice of previous day’s volume, which indicates good buying interest. Also, the stock has bounced back sharply from its 20-DMA level of Rs 725. Moreover, the stock has crossed above its strong resistance level of Rs 755, which it was unable to break for the past five trading sessions. Interestingly, the stock has also crossed above its 23.8% retracement level of its prior downtrend. Thus, the price structure looks quite bullish.

As per the technical parameters, the stock has shown improvement in its strength. The 14-period daily RSI (56.30) is placed above its prior swing high and points upwards, indicating strong strength. The MACD histogram is positive for the 6 trading sessions, showing a healthy upmove. The +DMI is crossed above its -DMI and demonstrates a trend change. Meanwhile, the Elder Impulse System has shown a fresh buy. The TSI and KST indicators also demonstrate an improvement in the stock’s strength. 

In the past one month, the stock has relatively outperformed the broader market, having gained about 8% during the period. As per its price structure and improving strength, the stock is expected to trade higher in short term. It can test the level of Rs 790, followed by Rs 800 which is also its 100-DMA is short term. The volumes have been above average lately, which supports the bullish claim. Traders should include this stock in their watchlist as it provides good short-term trading ideas. 

Poly Medicure Limited is a midcap company, engaged in the manufacturing and sale of medical devices and equipment. With a market capitalisation of about Rs 7100 crores, it is one of the most promising company in its sector.