Usha Martin

Investors with medium-term perspective can consider buying the stock of Usha Martin (Rs 88.5). The stock has been on a steady long-term uptrend since its March 2009 low of Rs 18.6, shaping rising peaks and troughs.



The stock found support at Rs 75 in May and June 2010, following a short-term correction from its 52-week high of Rs 105 recorded in early April. On September 1, the stock climbed 4 per cent with good volume, conclusively penetrating its moving average compression around Rs 83. The stock appears to have resumed its long-term uptrend.

The daily relative strength index is featuring in the bullish zone and weekly RSI is at 57, on the brink of entering in to the bullish zone. The daily moving average convergence divergence oscillator has signalled a buy and is hovering in the positive territory.

Further, weekly MACD is also hovering in the positive territory signalling upward momentum. Both daily as well as weekly price rate of change indicators are positioned in the positive territory implying bullish undercurrent.

Our medium-term forecast on the stock is positive. We believe that Usha Martin has the potential to move ahead until it hits our medium-term price target of Rs 105, following a minor pause around Rs 96. Medium-term investors can buy the stock with stop-loss at Rs 80.

Follow up – Indiabulls Real Estate (Rs 176.2)

After an initial decline to intra week low of Rs 165, the stock bounced up to end the week with Rs 4.7 gain.

However, volume was low in this up move, signalling weakness. We reiterate our medium-term bearish view on the stock with target of Rs 142 and stop-loss at Rs 187.

via BL