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Investors with short-term perspective can consider buying the stock of Bharti Shipyard. It is apparent from the charts of the stock that since peaking out from Rs 352 in January 2010, the stock has been on a long-term downtrend. Medium-term trend is also down for the stock. However, its significant longer-term base level at around Rs 75 appears to have arrested the stock's decline in late November.
Triggered by positive divergence in weekly relative strength index and moving average convergence divergence indicator, the stock is changing its direction. On Thursday, the stock jumped 8.8 per cent witnessing buying interest, accompanied by extraordinary volume. With this up move, the stock's short-term trend is reversing upwards. The daily RSI has entered into the neutral region from the bearish zone and weekly RSI is recovering from the oversold territory.
The daily price rate of change indicator is on the brink of entering into the positive territory from the neutral territory. Taking a contrarian view on the stock, we are optimistic on it from a short-term perspective. We anticipate its up move to sustain further and touch our price target of Rs 89 or Rs 92 in the approaching trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 84.
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