Triveni Engineering (Rs 97.50): Buy

We recommend a ‘buy’ in Triveni Engineering and Industries from a short-term perspective. It is evident from the charts that it was on an intermediate-term downtrend from its January 2008 high of Rs 195 to it July low of Rs 64. However, the stock reversed direction and has been on a short-term uptrend since early July. During this up move, the stock first crossed over 21-day moving average and later 50-day moving average as well.
On August 1, the stock conclusively penetrated its intermediate-term down trendline by surging almost 5 per cent, accompanied with extraordinary volume. The daily relative strength index has entered in to the bullish zone from the neutral region. Moreover, the daily moving average convergence and divergence has entered in to the positive territory. We are bullish on the stock in the short-term horizon.
We expect its current up move to prolong until it hits our price target of Rs 110 in the upcoming trading sessions. Traders with short-term perspective can buy the stock while maintaining a stop-loss at Rs 91.
Yoganand D.

Thanks : TheHinduBusinessLine