We recommend a buy in SKF India at current price levels. It is evident from the weekly chart of SKF that it has been on a long-term uptrend since June 2003 low of Rs 210. However, after touching a life-time high of Rs 513, the stock was on a medium-term downtrend. The stock's downtrend retraced 61 per cent of the fibonacci retracement level of its prior uptrend and found support at Rs 360 levels, which also coincides with 200-day moving average line. Subsequently, th e stock resumed the long-term uptrend and penetrated the medium-term down trendline on November 19. The daily momentum indicators are signalling a buy. The immediate support for the stock is at Rs 390 and the next support is at Rs 360. Investors with short-term horizon can buy the stock with stop-loss at Rs 400. We expect the stock to move up further to Rs 500 level in the short-term, with a minor pausing at around Rs 475 levels.
Via Businessline
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