Buy BHARAT FORGE
|Buy Range||472 – 482|
|Target||520 – 525|
|Duration||12 – 15 Trading Days|
|Potential Returns^||9 – 10%|
|CP#||Idea||Buy Range||Target||StopLoss*||Duration||Potential Returns^|
|488.45||BUY||472 – 482||520 – 525||462||12 – 15 Trading Days||9 – 10%|
# CP – closing price on Feb 03, 2020
* Maintain recommended StopLoss by daily closing basis.
Once 1st target hit, reset StopLoss at 504.
^ Potential returns are calculated based on the median of buy range.
Bharat forge limited manufactures and sells forged components in India and operates in two segments – Forgings and Projects (Capital goods) to help clients across automobiles (across commercial and passenger vehicle), oil and gas, aerospace, locomotives, marine, energy (across renewable and non-renewable sources), construction, mining and general engineering.
|Sectoral Index||NIFTY 500|
TECHNICAL OBSERVATIONS (DAILY)
- As we see in the Daily chart, the medium-term trend is positive since last six months. There is a steady support baseline which is moving upwards along with price rise.
- In the past, after resetting the support, stock made a sharp U-Turn over the past couple of weeks.
- The stock has formed Bullish Engulfing candlestick near the bottom, which is a bullish reversal formation. Usually, this type of candlestick suggests the bull has taken control of a security’s price movement from bears.
- Current price is just above the support and based on the historical price action, we may expect a sharp rebound to the upper channel near 520-530.