We recommend a buy in the stock of Amar Remedies from a short-term perspective. It is evident from the charts of the stock that it peaked out after recording a life-time high of Rs 171 in November 2010 and witnessed a sharp correction thereafter that lasted till mid-December. However, the stock found significant support around Rs 80 and bounced up. This support provided base for the stock during early and late February.
Subsequently, triggered by positive divergence in the daily moving average convergence divergence and daily price rate of change indicators the stock changed its direction. Since then, the stock has been on a modest medium-term uptrend. Moreover, on May 13, the stock bounced up seven per cent triggered by positive divergence in daily relative strength index. The stock breached its 21- and 50-day moving average on Monday. There has been an increase in volumes over past three trading sessions.
We are bullish on the stock from a short-term perspective. We expect it's up move to prolong until it reaches our price target of Rs 108 or Rs 111 in the forthcoming trading sessions. Traders with short-term perspective can buy the stock with stop-loss at Rs 101.5.
Our Recommendation :
Bought to you by
Ingenious Investor Equity Research Division
Ravina Consulting Pattamal Plaza 3rd Cross Kamanahalli BANGALORE 560084