Kohinoor Foods

We recommend a buy in the stock of Kohinoor Foods from a short-term perspective. It is apparent from the charts of the stock that it was on an intermediate-term downtrend from its September 2008 peak of Rs 130 till its July low of Rs 43. However, the stock reversed direction taking support from the significant support band between Rs 41 and Rs 43. Since then, the stock has been on a medium-term uptrend. While trending up, the stock surpassed 21 and 50-day moving average one after another and is trading well above these averages. On August 12, the stock jumped 10 per cent, accompanied with high volume. This bullish momentum helped the stock to conclusively break through its intermediate-term down trend line, by gaining another 10 per cent with an upward gap on August 13. The daily relative strength index is featuring in the bullish zone. Besides, the daily moving average convergence and divergence is on the verge of entering into the positive territory. We are bullish on the stock from a short-term horizon. We anticipate it to move up until it knocks our price target of Rs 68. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 58.

via BL