We recommend a buy in Fedders Lloyd Corporation at current market price. From the daily chart of Fedders Lloyd Corporation, we see that it had been on a medium-term down trend between August and November (from a high of Rs 178 to a low of Rs 120). However, the stock found support at a significant long-term support level of Rs 125 and bounced up 13 per cent on December 13. This reversal helped the stock to penetrate the medium-term down trendline. Subsequently, the stock co mmenced to move sideways. Currently, the stock is trading just above the significant long-term support level (Rs 125). The moving average convergence divergence is on the verge of entering the positive region. We note that the downside risk in this stock is limited. The immediate support for the stock is at Rs 125 and the next support is pegged at Rs 115. Short-term investors with high risk profile can buy the stock while keeping a stop-loss at Rs 120. We expect the stock to bounce up and rally to Rs 150 and beyond that to Rs 154 in the short-term.
Via Businessline
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