V Guard Buy on declines

We recommend a buy in the stock of V-Guard Industries from a short-term perspective. It is apparent from the charts of the stock that after 50 per cent Fibonacci retracement of its prior up move (from May 2010 trough to early November peak), it found support around Rs 155 last week. A medium-term support around Rs 155 also provided support to halt the stock's corrective decline from Rs 215. 

The stock subsequently changed direction triggered by positive divergence displayed in the daily price rate of change indicator. On December 22, the stock jumped 5 per cent accompanied with high volumes, breaching its 21-day moving average and reinforcing the bullish momentum. The long- and medium-term trends for the stock are up. Daily relative strength index is rising in the neutral region towards the bullish zone and weekly RSI is likely to re-enter the bullish zone from the neutral region. 

The daily moving average convergence-divergence oscillator has signalled a buy and the price rate of change indicator has entered into positive territory implying buying interest. We are bullish on the stock from a short-term horizon. We expect it to move higher until it reaches our price target of Rs 225 in next couple of weeks. Short-term traders can consider buying the stock with stop-loss at Rs 174.

Yoganand D.

Source : Businessline.in

Bought to you by
Ingenious Investor
Equity Research Division


Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084


For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966


Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

V Guard - Buy

Investors with medium-term horizon can consider buying the stock of V-Guard Industries (Rs 225). The company is a leading manufacturer of voltage stabilisers and also manufactures water heaters, fans and low-tension power cables. After bottoming at Rs 38 in March 2009, the stock has been on steady long-term uptrend forming rising peaks and troughs.

However, the stock reversed direction since marking an all-time high at Rs 215 in early November 2010. It was on a medium-term corrective downtrend since then. After retracing 38.2 per cent Fibonacci retracement level of its prior uptrend, the stock found support from its long-term uptrend-line around Rs 146 in February 2011.

Medium-term trend is also up for V-Guard from this February trough. In late March, the stock conclusively breached its moving average compression (21, 50, and 200-day moving averages) around Rs 164 and in early April it emphatically broke through its key medium-term resistance at Rs 180. The 14-day relative strength index, which determines the speed and alteration of price movements, has re-entered in to the bullish zone and weekly RSI has entered in to this zone from the neutral region. Daily and weekly moving average convergence divergence indicators are featuring in the positive territory. Further, daily and weekly price rate of change indicators are hovering in the positive terrain signalling buying interest. Both long and medium-term uptrend-lines are in tact.

We are bullish on the stock from a medium-term perspective. We believe that V-Guard Industries has the potential to move higher and reach our medium-term price target of Rs 275, following a minor consolidation around Rs 200. Investors with medium-term horizon can consider buying the stock with stop-loss of 180

The stock did exceedingly well during the last 1 year. The details given below amply testifies this

Time Span	Price	Change	%Change
Today	223.05	2.15	0.97
Week	220.05	0.85	0.38
Month	218.90	2.00	0.91
Three Months	173.70	47.20	27.17
Six Months	177.95	42.95	24.13
One Year	102.10	118.80	116.35

Bought to you by

Ingenious Investor
Equity Research Division

Ravina Consulting
Pattamal Plaza
3rd Cross Kamanahalli
BANGALORE 560084

For Free Stock Advise + Ideas
sowmya@ravinaconsulting.com
Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com
Follow us - www.twitter.com/smartinvestor

V Guard Buy on declines

We recommend a buy in the stock of V-Guard Industries from a short-term perspective. It is apparent from the charts of the stock that after 50 per cent Fibonacci retracement of its prior up move (from May 2010 trough to early November peak), it found support around Rs 155 last week. A medium-term support around Rs 155 also provided support to halt the stock's corrective decline from Rs 215. The stock subsequently changed direction triggered by positive divergence displayed in the daily price rate of change indicator. On December 22, the stock jumped 5 per cent accompanied with high volumes, breaching its 21-day moving average and reinforcing the bullish momentum. The long- and medium-term trends for the stock are up. Daily relative strength index is rising in the neutral region towards the bullish zone and weekly RSI is likely to re-enter the bullish zone from the neutral region. The daily moving average convergence-divergence oscillator has signalled a buy and the price rate of change indicator has entered into positive territory implying buying interest. We are bullish on the stock from a short-term horizon. We expect it to move higher until it reaches our price target of Rs 185 or Rs 190 in the approaching trading sessions. Short-term traders can consider buying the stock with stop-loss at Rs 174.

Yoganand D.

Source : Businessline.in

Bought to you by

Ingenious Investor

Equity Research Division

Ravina Consulting

Pattamal Plaza

3rd Cross Kamanahalli

BANGALORE 560084

For Free Stock Advise + Ideas

sowmya@ravinaconsulting.com

Talk / SMS 08105737966

Read - www.ingeniousinvestor.blogspot.com

Follow us - www.twitter.com/smartinvestor