Transformers and Rectifiers

We recommend a buy in Transformers and Rectifiers from a short-term perspective. The stock formed a long-term trough at Rs 107 in March and has been on a strong uptrend since then. The correction in June halted above Rs 250 and the stock is once more heading higher. The 10-day rate of change oscillator and the daily moving average convergence and divergence indicator have moved above the zero line indicating a bullish near-term perspective.

We also see a spurt in volumes over the last four sessions that is supportive of the current uptrend extending. The stock can move higher to Rs 380 in the short-term. Short-term investors can buy with a stop at Rs 330.

via BL