Today's Pick - Alstom Projects

We recommend a buy in Alstom Projects India from a short-term perspective. From the charts, we see that the stock met with a key resistance level at around Rs 1,085 in early January and began to decline. The stock’s downtrend continued up to Rs 660 levels (touched in mid February) where it got support from a long-term support and bounced off penetrating the down trendline. The positive divergence in the daily Relative Strength Index (RSI) supports the stock’s b ounce off. The daily RSI has entered the neutral region from the bearish zone. The weekly RSI appears to have found support at 40 levels. The daily moving average convergence divergence has crossed over one another and is steadily rising towards the positive territory. Recently, the stock crossed over the 21-day moving average. Our short-term forecast for the stock is bullish. We expect the stock to move up to our target price of Rs 835 in the short-term. Investors with a short-term perspective can buy the stock while keeping the stop-loss at Rs 674.