Bilpower

We recommend a buy in the stock of Bilpower from a short-term perspective. It is apparent from the charts of the stock that it has been on an intermediate-term uptrend since its November 2008 low of Rs 60. However, encountering key resistance at Rs 200 in November 2009, the stock started to consolidate sideways in a broad range between Rs 160 and Rs 200. On July 20, the stock surged five per cent accompanied with above average volume, breaching the key resistance at Rs 200. Moreover, the stock crossed over its 50- and 200-day moving average in early June and is trading well above them. Short-term trend is also up for the stock. Both the daily and weekly relative strength indices have entered in to the bullish zone, reinforcing the stock's bullish momentum. The daily moving average convergence divergence indicator has signalled a buy and is hovering in the positive territory. Our short-term forecast on the stock is bullish. We expect this rally to continue until it hits our price target of Rs 212 or Rs 215 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 196.

via BL