Today's Pick - Action Construction Equipment

We recommend a buy in Action Construction Equipment from a short-term perspective. From the charts of the stock it is clearly visible that it has been on a steady long-term uptrend since it March 2007 low of Rs 162. However, after marking an all-time high of Rs 670 in early January, the stock was on a short-term corrective downtrend till it found support at Rs 400 levels. The long-term up trendline coincides with the significant support level at around Rs 400. In late Janu ary, the stock bounced off from Rs 400 level and reversed the short-term corrective downtrend recently. For past two weeks, the stock has been hovering around Rs 450 level. The daily momentum indicator has recovered from the oversold zone and is likely to enter the neutral region. Besides, the long-term uptrend is still in place. We are bullish on the stock in the short-term. We expect the stock to move up to our target level of Rs 522 in the short-term. Investors with short-term horizon can buy the stock with stop loss at Rs 400 levels.

Via Businessline