IDFC Ltd

We recommend a buy in the stock of Infrastructure Development Finance Company (IDFC) from a short-term horizon. It is apparent from the charts that after encountering resistance around Rs 180 in November 2009, the stock was on medium-term correction until it found support around Rs 142 in early February 2010. Subsequently, the stock started to move upwards, it penetrated the medium-term downtrend-line as well as 50-day moving average conclusively on February 26. Moreover, the stock appears to have resumed its long-term uptrend that has been in place since March 2009.

The stock is hovering well above its 21- and 50-day moving averages. The daily relative strength index has re-entered the bullish zone and weekly RSI is on the brink of entering this zone. Both the daily and weekly prices change indicators are hovering in the positive territory implying buying interest. Our short-term forecast is bullish on the stock. We anticipate it's upward journey to prolong until it hits our price target of Rs 182 in the short-term. Traders can consider buying the stock while maintaining stop-loss at Rs 156.

via BL