September 8, 2008
Business Line recommends a buy in Indo Tech Transformers from a short-term perspective. It is evident from the charts of Indo Tech Transformers that it has been on a medium-term uptrend from its 52-week low of Rs 264, recorded in early July. Since then, the stock has been trending up forming higher peaks and higher troughs. During early August the stock gained bullish momentum and crossed over its 21- and 50-day moving averages sequentially.
On August 11, the stock surged 14 per cent penetrating the down trendline that was in place from this January. There is an increase in volume over the past three trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI has entered in to the neutral region from the bearish area.
The moving average convergence and divergence is rising in line with the stock and also featuring in the positive territory. The medium-term up trendline is intact. We are positive on the stock from a short-term perspective. We expect the stock to move up until it hits our price target of Rs 430 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 369.
Source: Hindu Business Line |
