Today's Pick

Crew B.O.S. Products (Rs 104.6): Buy

D. Yoganand | Updated on April 06, 2011

7crew.eps



We recommend a buy in the stock of Crew B.O.S. Products from a short-term perspective. It is seen from the charts of the stock that after peaking out at Rs 205 in October 2010, the stock was on a medium-term downtrend until it found support around Rs 83 in February 2011. Apparently, the stock has a significant long-term support in the band between Rs 80 and Rs 85. Taking support at band once again in late March, the stock started to move higher triggered by positive divergence in the daily moving average convergence divergence and price rate of change indicators. On March 30, the stock penetrated its downtrendline by gaining 10 per cent. We observe that there is an increase in volumes over the past six trading session. Moreover, reinforcing the bullish momentum, the stock advanced 10 per cent on Wednesday, and it is hovering above its 50-day moving average. Daily relative strength index has entered into the bullish zone and weekly RSI is heading towards this zone. We are bullish on the stock from a short-term horizon. We anticipate it to rally until it reaches our price target of Rs 108 or Rs 111 in the approaching trading session. Short-term traders can buy the stock with stop-loss at Rs 101.5 levels.

Published on April 06, 2011

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