BL Kashyap and Sons

We recommend a buy in the stock of B.L.Kashyap and Sons from a short-term perspective. It is apparent from the charts of the stock that after encountering significant long-term resistance around Rs 500 in late December 2009, it started to trend downward. However, the stock found support at Rs 300 in June and repeatedly took support at this level until it emphatically bounced up on Monday. In that session, it jumped 16 per cent with extra-ordinary volume, conclusively penetrating its medium-term down trend-line as well as 200-day moving average. The stock's upward reversal has been backed by a positive divergence displayed in the daily moving average convergence divergence indicator and this oscillator has entered in to the positive territory. The 14-day relative strength index has entered in to the bullish zone and weekly RSI is on the verge of entering this zone. Our short-term forecast on the stock is bullish. We expect it to move up further until it hits our price target of Rs 400 or Rs 410 in the upcoming trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 376.

via BL