Alok Industries

Investors with a short-term perspective can buy Alok Industries. The stock underwent a steep correction in June and July when it plunged from Rs 29 to Rs 15. Things are looking up since then and the stock is in a short-term uptrend since July 13. The uptrend accelerated on Wednesday as the stock moved 7 per cent higher accompanied by strong volumes. Oscillators in the daily chart are just moving in to the bullish zone from neutral, indicating that the short-term rally can extend. The stock also recorded a firm close above the 50-day moving average on Wednesday; that is a positive signal.

We expect the stock to move up to Rs 24.4 in the near-term. Investors can buy the stock with a tight stop at Rs 20.4.

via BL