Aries Agro

Investors with medium-term perspective can consider buying Aries Agro. The long-term downtrend in the stock halted in March 2009 and a nascent uptrend is on since then. Prolonged positive divergence in the weekly oscillators implies that the stock could have formed a sustainable trough at Rs 24.5 in March. That the stock has penetrated its long-term down trend-line recently is also a positive from a long-term perspective.

Medium-term investor can accumulate the stock in the range between Rs 35 and Rs 48 with a stop at Rs 24. Once it breaksout beyond Rs 56, the stock has the capacity to rally to Rs 80 and Rs 110. Short-term investor can buy with the target of Rs 55 and stop at Rs 36

via BL