Amtek Auto

We recommend a buy in the stock of Amtek Auto from a short-term perspective. It is evident from the charts of Amtek Auto that it has been on an intermediate-term uptrend since its November 2008 low of Rs 42, forming higher peaks and troughs. In July the stock took support around Rs 90 and bounced back, resuming its uptrend. Since then, the counter has been on a medium-term uptrend too. The stock penetrated its 50-day moving average in early August and is trading well above this average. We notice that there is an increase in volume over the past three trading sessions. The daily as well as weekly relative strength indices (RSI) are featuring in the bullish zone. Besides, daily and weekly moving average convergence and divergence indicators are hovering in the positive territory. Our short-term outlook on the stock is bullish. We anticipate it to move up until it hits our price target of Rs 171. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 147.

via BL