Blue Star

We recommend a buy in the stock of Blue Star from a short-term perspective. It is evident from the charts of the stock that after taking support at Rs 125 in March, the stock began to trend upward. Since then it has been on an intermediate-term uptrend. However, following a short-term correction from Rs 399 in August, the stock took support at Rs 325, a long-term key support level and resumed its uptrend. The stock is hovering above its 21-day and 50-day moving averages. The daily relative strength index (RSI) has entered the bullish zone and weekly RSI is featuring in this zone. Both the daily weekly moving average convergence and divergence (MACD) indicators are hovering in the positive territory. Considering that the stock’s intermediate-term up trendline is intact, we are bullish from a short-term perspective. We anticipate it to rally until it hits our price target of Rs 405. Traders with a short-term perspective can buy the stock while maintaining a stop-loss at Rs 349.

via BL