Buy This Small Cap Defence Stock For Potential Gains Of 25% In 3 Months

HDFC Securities has recommended a 'Buy' on the stock of Astra Microwave in its research report dated August 8, 2022. The stock has been chosen as the brokerage's MTF positional pick. Here are the relevant details on the scrip as given by the brokerage together with the company's profile.

Target price, stop loss and time horizon

Target price given for the stock is Rs. 320-350, Stop loss is at Rs. 250 and the suggested time horizon for the buy on the scrip is up to 3 months. So, given the current market price of the stock at Rs. 278, the stock offers a probable upside of 25.9%. Averaging is advised at Rs.265.

Technical observations on the stock as noted by HDFC Securities

• Earlier this week, the stock has given a breakout with higher volumes.
• The stock has also breached above downward sloping trend line.
• The brokerage observes a formation of bullish pattern on daily and weekly time frame.
• The stock is also trading above 21 EMA, which is a bullish indication.
• Momentum oscillators like RSI and MACD are giving bullish indication suggesting bullish movement for the stock for few more weeks.

About Astral Microwave

Astral Microwave is a small cap entity that was incorporated in 1991. The company designs, develops and manufactures sub-systems for RF and microwave systems used in defense, space, meteorology and telecommunication.

Disclaimer

The given stock is recommended by the brokerage. Investors should not construe the article as an investment advice into the stock and instead should carry out their own due diligence before betting on any market linked security.