Bharat Gears (₹188.9)

Investors with a short-term perspective can buy the stock of Bharat Gears at current levels. On Monday, the stock gained ₹15 or 8.6 per cent with an above average volume, witnessing buying interest at lower levels. Long-term trend is up for the stock.

Since taking support at around ₹133 in August 2017, the stock has been in a medium-term uptrend. However, after marking a new high at ₹231 in early January this year, the stock began to reverse direction. This down move found support at a key long-term base level of ₹170 last week. Moreover, this base level also coincides with the 61.8 per cent fibonacci retracement level of the medium-term uptrend.

Witnessing buying interest at this significant support level, the stock bounced back on Monday, resuming its medium-term uptrend. Both the daily and weekly relative strength indices are featuring in the neutral region.

The short-term outlook is bullish for the stock as medium-term up trend-line is intact and the key support has cushioned the down move. The stock can extend its up move and reach the price targets of ₹196.5 and ₹201 in the coming trading sessions. Traders with a short-term view can buy the stock with a stop-loss at ₹185.

(Note: The recommendations are based on technical analysis. There is a risk of loss in trading.)

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