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Investors with a short as well as medium-term perspective can consider buying the shares of Bartronics India. It is evident from the charts of Bartronics that after penetrating its key support level of Rs 140 during early October, its long-term downtrend got accelerated, witnessing sharp declines. However, the stock reversed its direction, finding support around its 52-week low of Rs 55 in early December. This reversal was triggered by a prolonged positive divergence in bo th daily relative strength index (RSI) and MACD (moving average convergence and divergence).

We note that the stock has conclusively penetrated the accelerated medium-term down trendline on December 5 by gaining 13 per cent with heavy volume. With this bounce, we believe that the stock’s medium-term downtrend has halted at Rs 55. The daily RSI is on the brink of entering into the neutral region from the bearish zone and weekly RSI is recovering from the oversold territory.

Our short and medium-term forecast is bullish for the stock. We expect the stock to move up until it hits our price target of Rs 76 in the short-term, while maintaining a stop-loss at Rs 61. For medium-term investors the price target is Rs 100 and the stop-loss is at Rs 50.

Yoganand D.

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