Bharat Forge

Investors with a short-term trading perspective can sell Bharat Forge. This stock faces key intermediate term resistance in the zone between Rs 300 and Rs 330 and it reversed lower from this band in January. The weak rebounds since this peak imply that the stock can decline to Rs 215 over the ensuing months. Weakness in weekly oscillators and the stock's decline below the 50-day moving average supports this view.

Chart patterns in the daily chart too imply that the stock is facing selling pressure at higher levels. The stock has been closing much below its intra-day high in last four trading sessions. The 14-day relative strength index positioned at 37 and rate of change oscillator reversing below the zero line denote that the stock can decline further in the near term. Short term investors can sell the stock with the stop at Rs 252. The stock can fall to Rs 234 and Rs 220 in the days ahead.

Bharat Forge futures (Rs 243)

Traders can short the Bharat Forge future in intra-day rallies to Rs 246 or Rs 248 with stop at Rs 252. Downward targets are Rs 235 and Rs 228.

via BL