LLoyd Electric and Engineering

We recommend a buy in Lloyd Electric and Engineering from a short-term trading perspective. The stock has been on an intermediate term up-trend since the low of Rs 13.6 recorded on March 6. Though this trend is halting since the last week of May and a consolidation is in progress, we notice that the decline halted above Rs 37 that is 38.2 per cent retracement of the up-move since the March trough. Further the hammer pattern formed on Tuesday also indicates buying support around Rs 37. Though the 14-day relative strength index is moving lower, it is still in bullish zone at 59. Investors with a short-term horizon can buy the stock with a stop at 40.5. The stock can move up to Rs 46.6 in the near future.

via BL