Agrotech Foods

We recommend a buy in Agro Tech Foods from a short-term perspective. From the charts it is apparent that Agro Tech Foods has been on a medium-term uptrend from its July low of Rs 112. In late July, the stock crossed over its 21- and 50-day moving averages and is currently trading well above the averages. We notice that the volume has been increasing over the past three trading sessions. The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI is steadily rising in the neutral region. The moving average convergence and divergence is gradually moving upward in the positive territory, reinforcing the bullishness. We expect the stock’s medium-term up trend to prolong until it hits our price target of Rs 157. Traders with short-term perspective can buy the stock with a stop-loss at Rs 135.

via BL