Bosch Chassis Systems India

We recommend a buy in Bosch Chassis Systems India. From the charts of the Bosch Chassis Systems we see that it had been on a medium-term downtrend between June and October (from Rs 600 to Rs 350). However, the stock found support at around Rs 350 in October and moved up slowly. During this up move, the stock breached the 21-day and 50-day moving average lines. On December 26, the stock penetrated the medium-term down trendline. This up-move is supported by a bullish divergence in the weekly momentum indicator. The stock is currently testing resistance level Rs 430. The daily momentum indicator is featuring in the bullish region. The daily moving average convergence divergence is progressively rising in the positive region. The immediate support for the stock is at Rs 350 and the next support is at Rs 300. We expect the stock to penetrate the current resistance and move up to Rs 490 level in the short-term. The short-term investors can buy the stock with stop-loss at Rs 390.

Via BL