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Investors with short-term perspective can consider buying the stock of Kalpataru Power Transmission. It is seen from the charts of the stock that after peaking out at Rs 250 in January 2010, it has been on an intermediate-term downtrend. The stock's short-term downtrend that was in place from its January 2011 peak of Rs 174 came to an halt finding support at its longer-term support level of Rs 110 in mid of March. The stock, however, changed its direction triggered by positive divergence in daily relative strength index and moving average convergence divergence.
On March 24, the stock penetrated its short-term down trend-line and 21-day moving average by jumping four per cent with good volume. Reinforcing the stock's bullish momentum, it increased four per cent on Tuesday. The 14-day RSI is on the verge of entering in to the bullish zone and weekly RSI is on the brink of entering the neutral region from the bearish zone. The daily MACD is steadily inching higher towards the positive territory. Daily price rate of change indicator is featuring in the positive zone indicating buying interest.
We are bullish on the stock from a short-term perspective. We expect it to move higher until it reaches our price target of Rs 131 or Rs 135 in the upcoming trading sessions. Short-term traders can buy the stock with stop-loss at Rs 123 levels.
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