BL Kashyap and Sons

We recommend a buy in the stock of BL Kashyap and Sons from a short-term horizon. It is evident from the charts of the stock that on December 24 it made an upward break through of a narrow sideways consolidation band between Rs 375 and Rs 420 that had been in place since early November. The stock appears to have resumed its intermediate-term uptrend which has been in motion from March low of Rs 86 (52-week low). The recent surge in stock price breached its 21- and 50-day moving averages conclusively. We observe that there is an increase in volumes over the past three trading sessions. Reinforcing the bullish momentum, the daily relative strength index (RSI) has entered in to the bullish zone and weekly RSI is on the verge of entering this zone from the neutral region. The daily moving average convergence and divergence (MACD) indicator has signalled a buy and is likely to make an entry in to the positive territory and the weekly MACD is featuring in this territory. Our short-term outlook is bullish for the stock. We expect it to move up further until it hits our price short-term price target of Rs 495. Traders with short-term perspective can consider buying the stock while maintaining a stop-loss at Rs 425.

via BL