Todays Pick

Bharat Forge (₹507.2): Buy

Yoganand D BL Research Bureau | Updated on January 09, 2020 Published on January 10, 2020

Investors with a short-term perspective can buy the stock of Bharat Forge at current levels. Breaking above a key resistance at ₹500, the stock jumped almost 5 per cent accompanied by above average volume on Thursday.

The stock has been in a medium-term uptrend, after taking support at ₹380 last August. In December, the stock resumed the uptrend after finding support at ₹430 levels and has been in a short-term uptrend since then.

While trending up, the stock has conclusively breached its moving average compression (21-, 50- and 200-day moving averages) at ₹450 in December and continued to trend upwards. The recent rally has strengthened the short as well as the medium-term uptrend.

The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI has entered the bullish zone as well. Further, the daily and the weekly price rate of change indicators are hovering in the positive terrain implying buying interest.

Overall, the short-term outlook is bullish for Bharat Forge. It can extend the uptrend and reach the price targets of ₹525 and ₹535 in the upcoming sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹498.

Note: The recommendations are based on technical analysis. There is a risk of loss in trading.

Published on January 10, 2020
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