Today's Pick

Max India (Rs 174.7) : Buy

D. Yoganand | Updated on May 11, 2011 Published on May 11, 2011

We recommend a buy in the stock of Max India from a short-term perspective. It is seen from the charts of the stock that it had bottomed out in December 2010, taking support at Rs 135. Since then, the stock has been gradually trending higher. Last month, the stock took support around Rs 155 which was a key medium-term base level. The 200-day moving average hovering around the same level also provided support. Subsequently, the stock resumed its move higher and has been on a near-term uptrend. Reinforcing the uptrend, the stock emphatically broke through its immediate resistance level at Rs 170 by gaining five per cent with good volume on May 11. The stock is trading way above its 50- and 200-day moving averages. Both daily and weekly relative strength indicators have entered in to the bullish zone from the neutral region signalling upward momentum. The daily moving average convergence divergence has signalled a buy and is hovering in the positive territory. Moreover, daily as well as weekly price rate of change indicators are featuring in the positive terrain indicating buying interest. We are bullish on the stock from a short-term perspective. We anticipate the stock to rally until it reaches our price target of Rs 180 or Rs 186 in the approaching trading session. Traders with short-term horizon can buy the stock with stop-loss at Rs 169.

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Published on May 11, 2011
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