Aries Agro

Aries Agro was among the top gainers on Monday as the stock surged 10 per cent higher. This spike was accompanied by volume that was the highest in the past three months. Monday's rally has also aided the stock to record its highest close in the past 17 months (called a ‘break-out' in technical parlance). Oscillators in the daily chart continue to show strength though the 14-day relative strength index has moved above 70, denoting that the stock is slightly overbought from a short-term perspective. Other oscillators such as the rate-of-change oscillator and the moving average convergence-divergence oscillator continue to signal a buy.

The intermediate-term uptrend that began from a March 2009 low halted at Rs 103 in January and the stock was in a gentle decline since then. However, the fact that the stock corrected less than 20 per cent from this peak implies that buyers are eager to buy the stock at every decline. The near-term trend will stay positive as long as the stock holds above Rs 100. Short-term investors can therefore buy the stock with a stop at Rs 100, with the target of Rs 118.

via BL