RCF

Investors with a medium-term perspective can consider investing in Rashtriya Chemicals & Fertilizers (RCF).

The stock bottomed in November 2008 at the significant long-term support level of Rs 25.

Since then, it has been trending upwards shaping higher peaks and troughs.

In early June, RCF conclusively penetrated a key resistance level of Rs 70 and was able sustain above this level on daily closing basis.

The stock is undergoing a sideways consolidation in the range of Rs 70 and Rs 89 for the past one month.

Both the weekly and monthly momentum indicators are exhibiting bullish momentum.

In short-term, the stock has the potential to move up to Rs 89, traders can buy with stop at Rs 76.

Medium-term investors can enter with a target of Rs 100 and hold as long as it trades above Rs 70 .

via BL