Amtek Auto

Investors with a short-term trading perspective can buy Amtek Auto. This stock was one of the strong movers in the Budget session and closed about 8 per cent higher accompanied by strong volumes. The stock has been trudging sideways in a sleepy manner all through February and the breakout recorded on Friday has resulted in a strong close above both the 21-day and the 50-day moving averages. The stock also moved above its downtrend-line on Friday.

The intermediate-term trend in the stock is up since the November trough of Rs 43.5. That the January correction halted at 38.2 per cent retracement of this up-move denotes a strong bullish undercurrent. The stock also reversed higher from its long-term 200-day moving average last Thursday. We expect the spurt that began on the Budget day to continue to take this stock higher to Rs 192 or Rs 201. Investors can buy this stock for the short-term with stop at Rs 177.
via BL