Bartronics India

We recommend a buy in Bartronics India from a short-term perspective. It is apparent from the charts of the stock that following medium-term corrective downtrend from July 2009 high to October 2009 low (from Rs 193 to Rs 130), the stock found support between Rs 130 and Rs 140. The stock bounced and has been on medium-term uptrend since October. On January 5, it penetrated its medium-term downtrend-line and conclusively surpassed 21- and 50-day moving averages. The stock continues to move higher and appears to have resumed the intermediate-term uptrend that has been in place from March low of Rs 61. The stock is trading well above its 21- and 50-day moving averages. We notice that the current rally has been backed by good volumes. The daily relative strength index (RSI) is featuring in the bullish zone and weekly RSI is heading towards this zone in the neutral region. Moreover, the daily moving average convergence and divergence indicator is steadily rising in the positive territory. Our short-term outlook is bullish for the stock. We expect it to move up until it hits our price target of Rs 183. Traders with short-term perspective can consider buying the stock while maintaining stop-loss at Rs 157.
via BL