SRF

We recommend a buy in the SRF stock from a short-term trading perspective. It is apparent from the charts of SKF that it has been on a medium-term up trend since its one-year low of Rs 62, recorded on February 3. Since this low the stock has been forming higher peaks and higher bottoms. While trending upward, the stock breached its 50-day moving average in late February and has been trading well above this average. Most recently the stock encounters resistance around Rs 95 and made a minor pullback to Rs 75 level. However, the stock resumed its medium-term uptrend after taking support from the up trendline around Rs 78. The daily relative strength index is on the verge of re-entering the bullish zone from the neutral region. Considering that the medium-term up trendline is intact, we are bullish on the stock from a short-term horizon. We expect the stock’s uptrend to continue until it hits our price target of Rs 94 in the upcoming trading sessions. Traders with short-term trading perspective can buy the stock while maintaining a stop-loss at Rs 81.