Eveready Industries (Rs 79): Buy (Recommended by The Hindu Business Line)

We recommend a buy in the stock of Eveready Industries India from a short-term horizon. It is evident from the charts of the stock that it has been on a long-term uptrend from its December-2008 low of Rs 11.5. Moreover, it took support around Rs 55 in this May and resumed its long-term trend. After testing key long-term resistance of Rs 75 for more than a month, the stock decisively broke out on September 6 by gaining 5.5 per cent with heavy volume. The stock is trading well above its 50 and 200-day moving averages. The 14-day relative strength index has entered the bullish zone from the neutral region and the weekly RSI is featuring in the bullish zone. Both daily and weekly moving average convergence divergence oscillators are hovering in the positive territory signalling upwards momentum. Our forecast on the stock is positive from a short-term perspective. We expect the stock to move up further until it hits our price target of Rs 82 or Rs 85 in the ensuing trading sessions. Short-term traders can buy the stock while maintaining stop-loss at Rs 76.

Yoganand D.



From: http://www.blonnet.com/2010/09/07/stories/2010090751381100.htm