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We recommend a buy in Bharat Electronics from a short-term perspective. Form the charts of Bharat Electronics, we see that the stock was on a medium-term downtrend from its January 2008 high of Rs 2,170 to its late March low of Rs 1,040. Recently, the stock found support at around Rs 1,100 level and ended its medium term downtrend. On April 4, the stock jumped 4 per cent piercing the medium-term down trendline. We note that there was an increase in volume for the past two trading sessions. The daily moving average has recovered from the oversold region and is on the brink of entering the neutral range. The weekly momentum indicator is recovering from the oversold territory. A cross over in the daily moving average convergence divergence also indicates a buy signal. Our short-term outlook for the stock is bullish. We expect the stock to move up to our price target of Rs 1,350 in the short-term. Investor with short-term perspective can buy the stock while keeping the stop-loss at Rs 1097.

Yoganand D.

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