Thursday, 17 September 2009

Hanung Toys & Textiles (Rs 85.9): Buy

We recommend a buy in Hanung Toys & Textiles from a short-term perspective. It is apparent from the charts of the stock that after recording a 52-week low of Rs 24 in January, it began to trend up and has been on an intermediate-term uptrend. Within this trend, it was on a corrective phase during June and July (from Rs 105 to Rs 55). The stock resumed its uptrend, after taking support around Rs 55. On September 7, it conclusively penetrated a key medium-term resistance level of Rs 80 by gaining almost 10 per cent with good volume. The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has entered into the bullish zone and the weekly RSI is likely to enter this zone. Both daily and weekly moving average convergence and divergence indicators are hovering in the positive region. We are bullish on the stock from a short-term horizon. We anticipate the stock to move further until it knocks our price target of Rs 95 in the resembling sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 81.

Source: thehindubusinessline

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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.