Ahluwalia Contracts India

We recommend a buy in Ahluwalia Contracts India at current market price. From the weekly chart, we note that it has been on a steady long-term uptrend from June 2007 low of Rs 78. The daily chart shows that after touching an all-time high of Rs 400 on December 20, the stock declined and has been moving sideways around Rs 350. The stock is currently trading near the 21-day moving average line, which is repeatedly supporting the stock. The weekly momentum indicator is featur ing in the bullish region and the daily momentum indicator is likely to re-enter this region from the neutral region. The stock's long-term trend is intact. All these are positive signals. The immediate support for the stock is at Rs 310 and the next support is at Rs 250 levels. We expect the stock to move up to the resistance level of Rs 400 in the short-term. The short-term investors can buy the stock with stop loss at Rs 308.


Via BL