Today's Pick

BS Transcomm (Rs .96.1) - Buy

D. Yoganand | Updated on October 06, 2011 Published on October 06, 2011

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We recommend a buy in the stock of BS Transcomm from a short-term perspective. It is seen from the charts of the stock that in early July this year, it encountered resistance in the band between Rs 140 and Rs 145 and fell steeply until it found support at its significant level at around Rs 80 in late August.

However, the stock changed its direction triggered by positive divergence in daily relative strength index and price rate of change indicator. The stock's immediate support at around Rs 89 had cushioned it from declining below this level for more than a month. On Wednesday, the stock rose 3.8 per cent, breaching its 21-day moving average and medium-term downtrend line.

We observe that there is an increase volume in the past two trading sessions. Daily RSI is inching higher in the neutral region and weekly RSI is recovering from the over sold territory. The daily moving average convergence divergence indicator is moving higher in line with the stock price.

We are bullish on the stock from a short-term perspective. We expect it to rally further until it hits our price target of Rs 99 or Rs 102 in the forthcoming trading sessions. Traders with short-term perspective can consider buying the stock with stop-loss at Rs 93.5.

Published on October 06, 2011
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