Today's Pick - EKC

We recommend a buy in Everest Kanto Cylinder from a short-term perspective. It is evident for the charts of Everest Kanto Cylinder that it has been on steady and gradual long-term uptrend since July 2005 low of Rs 54. Recently, the stock resumed the long-term uptrend, following a short-term correction from its life high of Rs 385 to a low of Rs 238. The stock’s resumption of the uptrend has been backed with bullish divergence in the daily momentum indicator. The dail y momentum indicator is rising in the neutral region and the weekly momentum indicator is on the edge of entering the bullish region. We also note that the 200-day moving average line has provided support for the stock recently. Moreover, 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 375 in the short-term. The investors with short-term perspective can buy the stock with stop loss at Rs 279.


Via Businessline