Comments
We recommend a buy on the stock of V-Guard Industries from a short-term perspective. It is apparent from the charts of the stock that since bottoming out from its December 2011 low of Rs 141, the stock has been on an intermediate-term uptrend. This uptrend accelerated in early July this year and the stock registered a new high at Rs 457 in mid-August. Following a short-term corrective decline, the stock found support at around Rs 380 in early October.
The stock started to move higher thereafter and it appears to have resumed its intermediate-term uptrend. On Monday, it jumped 5.5 per cent with good volume breaking through its key immediate resistance at Rs 420 levels. The up move has reinforced bullish momentum on the stock. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered the bullish zone from the neutral region and weekly RSI is featuring in the bullish zone. The daily moving average convergence divergence indicator is moving in line with the stock price implying upward momentum.
Our short-term outlook on the stock is bullish. We expect its rally to prolong and reach our price target of Rs 458 or Rs 476 in the approaching trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 432 levels.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.