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

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 a short-term perspective. It is perceptible from the charts of the stock that after recording a multi-year low of Rs 69 in January, it began to trend upwards. Since then it has been on an intermediate-term uptrend, forming higher peaks and troughs. While trending up, the stock conclusively broke through key resistance levels at Rs 195 and Rs 240 which subsequently turned in to key support levels. Following a short-term pull-back from Rs 307, the stock found support around Rs 240 and resumed its uptrend. On November 4, the stock gained 7 per cent with above average volume, reinforcing the uptrend. The daily relative strength index (RSI) bounced up from 40 level and is heading towards the bullish zone. Moreover, weekly RSI has entering in to the bullish zone. Our short-term forecast for the stock is bullish. We anticipate it to rally further until it hits our price target of Rs 293 in the approaching trading sessions. Traders with a short-term perspective can buy the stock while maintaining stop-loss at Rs 252.

More Stories on : Stocks | Recommendation | Automobile Components

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