Kavveri Telecom Products

Kavveri Telecom Products is in a medium-term uptrend from its July 2009 trough of Rs 38.1. The stock took support at the medium-term uptrend-line in the last week of March before bouncing higher.

The uptrend from this trough has been very strong and the stock has recorded six-consecutive up-closes since then. What is more important is that the stock recorded a close above the key medium-term resistance at Rs 90 on Wednesday. It had been struggling to cross above this level since this January.

Our medium-term view for this stock will stay positive as long as it holds above Rs 90.

Oscillators in the daily chart have perked up this week. Both the moving average convergence divergence oscillator as well as the 10-day rate of change oscillator have moved higher after protracted sideways movement. The relative strength index indicator strikes a slightly discordant note since it has moved in to overbought zone. But there is no sign of weakness on the oscillator charts yet.

The stock is expected to move higher to Rs 100 and Rs 106 in the days ahead. Investors with short-term trading perspective can buy the stock with stop at Rs 91.

via BL