Mahindra Forgings

We recommend a buy in the stock of Mahindra Forgings from a short-term perspective. It is apparent from the charts of the stock that from its March low of Rs 35.3, the stock has been on an intermediate term uptrend. However, following a medium-term downtrend from March 2010 peak (Rs 145) to the May trough of Rs 85, the stock reversed higher. Subsequently, the stock formed a strong base at the support level Rs 100 before inching higher.