Aries Agro

We recommend buying the stock of Aries Agro from a short-term perspective. It is apparent from the charts that the stock has been on a steady longer-term uptrend since its March 2009 low of Rs 24.5, forming higher peaks and higher lows. It broke through various key resistances such as Rs 40, Rs 60 and Rs 80 level recently with good volumes. The stock is in an uptrend in all time frames, intermediate, medium and short-term. On January 11, it surged 5 per cent accompanied with good volume recoding a 52-week high of Rs 89.8. These gains have reinforced the stock's bullish momentum and it is trading way above the 21- and 50-day moving averages. Both the daily and weekly relative strength indices are featuring in the bullish zone. Besides, the daily as well as weekly moving average convergence and divergence indicators are hovering in positive territory. Our short-term outlook on the stock is bullish. We expect its current up move to prolong until it hits our short-term price target of Rs 99. Traders with short-term perspective can consider buying the stock with Rs 85 as stop-loss.

via BL