• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• BL Club
• Smartbuy
• Books

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

We recommend a buy in Bharat Forge stock from short-term horizon. It is evident from the charts of Bharat Forge that from January 2008 high of Rs 389, it has been on a long-term downtrend. Since then, it has been forming lower peaks and lower troughs. This long-term downtrend accelerated during September 2008 and the stock witnessed sharp declines thereafter. The stock, however, found support around Rs 80 in mid-December and has been consolidating sideways. We notice heavy volume over the past two weeks trading sessions. Furthermore, the daily relative strength index (RSI) is displaying prolonged positive divergence and the weekly RSI is still hovering in the oversold territory. The daily moving average convergence and divergence is also displaying positive divergence. From a short-term trading perspective, we are bullish on the stock. We expect it to move up until it hits our price target of Rs 94 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 79.

More Stories on : Stocks | Recommendation | Engineering

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Copyright © 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line