S Kumars Nationwide

We recommend a buy in S.Kumars Nationwide at current market price. From the weekly chart of S.Kumars Nationwide it is evident that it has been on steady long-term uptrend since March 2007 low of Rs 59. The stock has multiplied three times since this low. However, from the daily chart, we note that after touching an all-time high of Rs 177 on March 16, the stock began moving sideways. Moreover, we see that the stock has been constantly bouncing from the support around the 2 1-day moving average line. The daily as well as weekly momentum indicators are featuring in the bullish region. The moving average convergence divergence is in the positive region and is signalling bullishness. The immediate support for the stock is pegged at Rs 146 and the subsequent support is at Rs 128. Currently the stock is testing the resistance at Rs 165. Considering the above bullish arguments, we expect the stock to break through the current resistance and move up to Rs 185 in the short-term. Short-term investors can buy the stock with stop-loss at Rs 149.

Via Businessnline