Stocks

Fiem Industries (Rs 163.1): Buy

Yoganand D. | Updated on March 02, 2011

fiem



We recommend a buy in the stock of Fiem Industries from a short-term perspective. It is evident from the charts of the stock that after recording an all-time high at Rs 220 in October 2010, the stock was on a medium-term downtrend until it found support at around Rs 150 levels in early February, which is a key support level. This level also coincides with the 38.2 per cent fibonacci retracement level of its long-term uptrend. However, the stock took support from Rs 150 and bounced up recently, triggered by positive divergence displayed in the daily relative strength index and moving average convergence divergence indicator. On Tuesday, the stock jumped almost 7 per cent, conclusively breaching its 50-day and 200-day EMA, accompanied with good volumes. The daily RSI has entered the bullish zone from the neutral region and weekly RSI is rising towards this zone. Daily MACD has signalled a buy and is heading towards the positive territory. Our outlook is bullish. We anticipate the up move to prolong until it reaches our price target of Rs 168 or Rs 173. Short-term traders can consider buying the stock with stop-loss at Rs 159.

Published on March 02, 2011

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