Bombay Dyeing

We recommend a buy in Bombay Dyeing & Manufacturing Company at current market price. From the daily chart of Bombay Dyeing it is apparent that it has been on a medium-term uptrend since August low of Rs 500. However, the stock met with a significant resistance at Rs 750 in late October and has been trading sideways in the range between Rs 650 and Rs 750 since then. On December 4, the stock broke-out of the sideways consolidation range, accompanied with good volumes. Re cently, the stock has moved above the 21-day and 50-day moving average lines too. The medium-term uptrend in the stock is intact. The weekly as well as daily momentum indicators are featuring in the bullish region, resulting in a short-term bullish outlook. The immediate support for the stock is at Rs 650 and the next is at Rs 600. Short-term investors can buy the stock while keeping their stop loss at Rs 727. We expect the stock’s current up move to continue up to Rs 850.

Via Businessline