Asahi India Glass (Rs 95.5): Buy [SHORT-TERM TRADING TIPS]

It is recommended a buy in the stock of Asahi India Glass from a short-term perspective. It is evident from the charts of the stock that since bottoming out in March 2009 after touching a low of Rs 33, the stock has been on a long-term uptrend forming higher peaks and troughs. However, following a minor corrective decline from its November 2010 peak, the stock found support at Rs 88 in December and bounced up. The stock recently took support from this short-term base of Rs 88 and bounced up again, triggered by the positive divergence displayed in the daily moving average convergence divergence indicator. Moreover, long-term uptrend-line is in tact and also provides support for the stock at Rs 88. In the past two trading sessions, the stock gained 5.8 per cent, forming a bullish engulfing candlestick pattern in the weekly chart that signals trend reversal. Both the daily and weekly relative strength indices are inching higher in the neutral region towards the bullish zone. Daily MACD has signalled a buy and is heading towards the positive territory whereas weekly MACD is featuring in this territory. We are bullish on the stock from a short-term perspective. We anticipate it to continue climbing higher until it reaches our price target of Rs 100 or Rs 102. Traders with short term perspective can consider buying the stock with stop-loss at Rs 92.



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DAY TRADING TIPS FOR 27.1.2011

DLF

Fresh long position is recommended only if the stock moves beyond Rs 260 levels with tight stop-loss.

ICICI Bank

On Tuesday, the stock tumbled 4 per cent with above average volume, experiencing selling pressure. Initiate fresh short position if the stock slips below Rs 1024 levels with tight stop-loss.

Infosys

Initiate fresh long position only if the counter moves beyond Rs 3275 levels with stiff stop-loss.

L&T

Fresh long position can be initiated if the stock bounces up from Rs 1655 levels with rigid stop-loss.

ONGC

We recommend a buy in the stock with stiff stop-loss at Rs 1115 levels.

Reliance Capital

Fresh short position is recommended only if the counter dives below Rs 567 levels with tight stop-loss.

Reliance Communications

Initiate fresh long position only if the stock climbs beyond Rs 135 levels with fixed stop-loss.

Reliance Industries

RIL is currently testing key short-term support level. Initiate fresh short position only if the stock drops below Rs 944 levels with tight stop-loss.

SBI

Fresh short position can be initiated if the stock fails to move beyond Rs 2705 levels with stiff stop-loss.

Nifty Futures

Initiate fresh long position only if Nifty futures advances above 5733 levels with stiff stop-loss.

SOURCE: HINDU BUSINESS