BGR Energy Systems

We recommend a buy in BGR Energy Systems from a short-term perspective. It is evident from the charts of the stock that after recording a 52-week low of Rs 107 in March, it commenced an uptrend. Since then, the stock has been forming higher peaks and troughs and has been on an intermediate-term uptrend. In its upward journey the stock broke through a major resistance level. Recently the stock took key support at Rs 440 (a long-term support level) and bounced up resuming its uptrend. It has gained 7 per cent accompanied with good volume over the past two sessions. The stock is trading well above its 21-day and 50-day moving averages. The daily relative strength index (RSI) has entered into the bullish zone and the weekly RSI is already featuring in this zone. The medium-term up trendline of the stock is still in place. We are bullish on the counter from a short-term perspective. We expect it to rally further until it hits our price target of Rs 530 in the approaching trading sessions. Traders with a short-term perspective can buy the stock, while maintaining a stop-loss at Rs 460.

via BL