Hind Rectifiers

Investors with short-term trading perspective can buy the stock of Hind Rectifiers. After recording a 52-week high of Rs 91.7 on 17 February 2010, the stock tumbled sharply. However, in late March the stock found support at Rs 55 which is a significant long-term support level. Following a sideways consolidation in a narrow range between Rs 55 and Rs 60 for three months, the stock conclusively broke through its upper boundary on July 15 by gaining 6 per cent. There is a boost in volume traded over the past two sessions. Moreover, the stock appears to have decisively breached its moving average compression around Rs 60. The daily relative strength index is hovering in the bullish zone and weekly RSI is on the brink of entering this zone. The daily moving average convergence divergence indicator has signalled a buy and is featuring in the positive territory. We are bullish on the stock from a short-term perspective. We expect it to move up further until it hits our price target of Rs 70 or Rs 72.5 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining stop-loss at Rs 65.

via BL