Today's Pick

BGR Energy Systems (Rs 264.3): BUY

D Yoganand | Updated on March 14, 2018 Published on February 13, 2012

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We recommend a buy in the stock of BGR Energy Systems from a short-term horizon. It is apparent from the charts of the stock that after knocking a 52-week low at Rs 172 on January 2, the stock reversed its direction. Since then, BGR Energy has been on a medium-term uptrend.

The stock breached its 21- and 50-day moving averages in mid-January and is hovering well above them. Further, in late January, the stock took support around Rs 225 and continued its uptrend. The stock advanced five per cent accompanied by good volume penetrating its immediate key resistance at Rs 246 the previous week. Strengthening the current uptrend, the stock climbed four per cent on Monday. The daily relative strength index is featuring in the bullish zone and weekly RSI is inching higher in the neutral region. The daily moving average convergence divergence indicator is moving higher in line with the stock price and is hovering in the positive territory implying upward momentum. Both daily as well as weekly price rate of change indicators are featuring in the positive area indicating buying interest.

We are bullish on the stock from a short-term perspective. We expect the stock's up move to carry on to reach our price target of Rs 272 or Rs 280 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 256.5.

Published on February 13, 2012
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