Fresenius Kabi Oncology

We recommend a buy in the stock of Fresenius Kabi Oncology (earlier Dabur Pharma) from a short-term perspective. It is evident from the charts of the stock that the share has been on an intermediate-term uptrend from its October 2008 low of Rs 28. Since then, it has been forming higher peaks and higher troughs. However, following a medium-term correction from Rs 59 to Rs 42 (from early June to late July), the stock took support around Rs 42 and resumed its uptrend. Since this low, the stock has been on a medium-term uptrend too. It is trading way above its 21- and 50-day moving averages. On August 13, the stock conclusively broke through the key resistance at Rs 59 by gaining 7 per cent with high volume. The daily as well as weekly relative strength indices are featuring in the bullish zone. Our short-term outlook on the stock is bullish. We anticipate the stock’s uptrend to prolong until it knocks our price target of Rs 73. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 63.

via BL