Pratibha Industries (Rs 193.5): Buy

>> Tuesday, September 1, 2009

Investors with a medium-term perspective can consider buying the stock of Pratibha Industries.

After bottoming in December 2008 at the low of Rs 47, it has been trending upward. In late May 2009, the stock penetrated its key resistance around Rs 140 and has been in a sideways consolidation in the range of Rs 140 and Rs 185 for almost three months.

The counter recouped its bullish momentum and broke out of its consolidation phase on August 28. It is trading way above 21- and 50-day moving averages. The daily as well as weekly momentum indicators are featuring in the bullish region. We believe that the stock has the potential to move up to Rs 255 in the medium-term. Investors can buy it with stop-loss at Rs 165. Short-term traders can buy with a target of Rs 213 and tight stop at Rs 183.

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