Investors with a short-term perspective can buy Greaves Cotton that manufactures the widest variety of farm equipments in the country. On Tuesday, the stock jumped 6.4 per cent accompanied by above average volumes. The reported loss was mainly due to the company divesting its stake in Greaves Farymann Diesel, a step-down subsidiary in Germany. Technically, Tuesday’s up move has signalled a short-term buy.
Since the 52-week low at Rs 53 recorded in early August, the stock has been on a short-term uptrend and breached a key resistance at Rs 61. Further, the stock is now hovering well above its 21- and 50-day moving averages. Relative strength index in the daily chart has entered the bullish zone from the neutral region implying strength in the present up-move. Other indicators on the daily chart are also displaying bullish momentum. The stock can extend its up move until it hits the price target of Rs 66 or Rs 67.5 in the forthcoming trading sessions. Buy the stock with a stop-loss at Rs 62.
(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)