Monday, 21 September 2009

Tata Metaliks (Rs 102.4): Buy

We recommend a buy in Tata Metaliks from a short-tem perspective. It is visible from the charts of the stock that in mid-August it took support at Rs 80 and resumed its intermediate-term up trend. This trend has been in place since March low of Rs 44.5.While trending upward, it penetrated its 21- and 50-day moving averages in late August and is trading way above them. On September 17, the stock surpassed a medium-term resistance around Rs 95 by surging 5 per cent with good volume. The daily relative strength index (RSI) is hovering in the bullish zone and the weekly RSI has entered into the zone. Both daily and weekly moving average convergence and divergence indicators are featuring in the positive territory. Our short-term outlook on the stock is bullish. We expect its rally to prolong until it hits our price target of Rs 113 in the approaching sessions. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 96.5.

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.