Monday 10 November 2008

Hindustan Construction (Rs 58.8): Buy



Investors can buy Hindustan Construction Company at current levels with a short-term perspective. The stock bottomed at Rs 30.1 on October 27 after a protracted down trend. It had rebounded from this support in January 2005 too. Weekly candlestick chart patterns imply that a medium-term trough could have been formed at the recent trough at Rs 30.

Ten-day rate of change oscillator has moved firmly into the positive zone and the moving average convergence divergence oscillator too is signalling a buy. The implication is that the current up trend can sustain to take the stock higher. Our short-term target for the stock is Rs 68. Investors with a short-term horizon can purchase the stock with a stop at Rs 55.

Source: TheHinduBusinessLine

Posted by Harsh at 12:32

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DISCLAIMER: The author is not a registered stockbroker nor a registered advisor and does not give investment advice. His comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to buy or sell a stock, option, future, bond, commodity, index or any other financial instrument at any time. While he believes his statements to be true, they always depend on the reliability of his own credible sources. The author recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction, before making any investment decisions, and that you confirm the facts on your own before making important investment commitments.