Adhunik Metaliks

der buying the stock of Adhunik Metaliks (Rs 114.10). The company manufactures steel products for automotive engineering and household sectors.

The stock reversed direction, after recording a lifetime low of Rs 20.8 in December 2008. Since then it has been on a longer-term uptrend, forming peaks and troughs. However, the stock's minor corrective decline from the resistance level of Rs 125 got arrested, around the significant medium-term support of Rs 100 recently.

The stock appears to have resumed its long-term trend; moreover its intermediate-term also is up. It is also trading above its 21- and 50-day simple moving averages. The daily relative strength index has entered in to the bullish zone and weekly RSI is on the verge of entering this zone. A crossover in the daily moving average convergence and divergence indicator signals a buy and this indicator in the weekly chart is featuring in the positive territory.

Our medium-term forecast is bullish on the stock. We believe that it has the potential to trend higher to Rs 140 in the medium-term with a pause around 125 levels. Investors with medium-term perspective can consider buying the stock with Rs 102 as stop-loss. In the short-term, the stock has the room to rally to Rs 125. Short-term traders can buy with stop-loss at Rs 108.

Follow-up: Dalmia Cement (Rs 215.2)

We had recommended this stock on February 22. In line with our anticipation, the stock achieved our short-term price target of Rs 235 recently and then fell. Short-term traders can avoid initiating fresh positions. Medium-term investors can stay invested with target of Rs 260 while maintaining Rs 190 as stop-loss.

via BL