Let’s have a BULL’S EYE on Moser Baer-(I) Ltd.

This scrip has closed above the short term moving average of 20-EMA at 61.57. This shows that the current momentum is on the long side. This counter could be traded for the long side in a short term perspective.

• The ADX trend indicator has bottomed up a few sessions earlier, suggesting that the previous correction is over. Now the current could be a trend upsurge if the ADX indicator moves above 30 levels.
• The +DI & -DI crossover has occurred in the favor of positive side. it gives the buyers an edge over the shorts. Keeping in mind the periodic crossover, we expect this to continue.
• The MACD line is above the zero level and the Signal line is making its journey towards the positive side. If this happens then the scrip would be ready for a move northwards. The MACD Histogram is again rising after being in the constant positive range. This move could bring bullishness in the scrip.
• The Slow Stochastic momentum indicator is showing positive momentum build up in the scrip. The %K line & %D line have both bounced from the below 50 levels and are now near the halfway mark. The %K line is above the %D line which suggests momentum on the long side.

We should trade this stock on the long side for a target of Rs.65 which is near the medium term moving average (50-EMA) at Rs.65.8. The trade should be done at the trading price in the range of Rs. 60.65- 61.15 with a strict stop loss of 1% at Rs. 60.05.

Akash Singh, Technical Analyst [Akash@hbjcapital.com], HBJ Capital Services Pvt Ltd.