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Investors with a short-term horizon can buy the stock of Bharat Forge at current levels. Since the stock registered a multi-year low at ₹207 in April 2020, it has been in a long-term uptrend. Medium as well as short-term trends are also up for the stock. In last week of May this year, the stock had emphatically breached a key resistance at ₹700 and continued to trend upwards. Following a minor corrective decline over the past one month the stock took support at ₹770 in last week and resumed the uptrend. On Tuesday, the stock gained 3.4 per cent with good volume and surpassed a key hurdle at ₹800 as well as the 21-day moving average. The stock hovers well above the 21 and 50-day moving averages.
The daily relative strength index has entered the bullish zone from the neutral region and the weekly RSI continues to feature in the bullish zone. Further, the daily price rate of change indicator has entered the positive terrain implying buying interest. The short-term outlook is bullish.
The stock has potential to trend upwards and reach the price targets of ₹845 and ₹862 in the upcoming trading sessions. Traders can buy the stock with a stop-loss at ₹794 levels.
(Note: The recommendations are based on technical analysis. There is risk of loss in trading.)
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