Hercules Hoists

We recommend a buy in the stock of Hercules Hoists from a short-term perspective. It is evident from the charts of the stock that from its March 2009 low of Rs 71.5, it has been on a long-term uptrend.



Moreover, following a medium-term sideways consolidation between Rs 210 and Rs 240 from January 2010 to July, the stock conclusively broke through its upper boundary by jumping more than 10 per cent on July 26. Since then, it has been on a short-term uptrend as well, trading way above its 21- and 50-day moving averages.

On Thursday, the stock climbed 5 per cent with good volumes, reinforcing the bullish momentum. Both the daily and weekly relative strength indices are featuring in the bullish zone.

The daily as well as weekly moving average convergence divergence oscillators are hovering in the positive territory implying upward momentum. Our short-term forecast on the stock is bullish.

We anticipate its rally to prolong until it hits our price target of Rs 285 or Rs 290 in the ensuing trading sessions. Traders with short-term horizon can buy the stock while maintaining stop-loss at Rs 269.

via BL